Gold Stabilizes Below $4,350 Amid Soaring Yields and Inflation Worries

Gold prices steadied at around $4,335 on Wednesday, after pulling back from an early June high near $4,450. The precious metal faced selling pressure due to surging Treasury yields, which hit their highest levels in decades.

Rising long-term borrowing costs from the US to Japan and Germany also weighed on non-yielding gold. Thirty-year bond yields in the US reached their highest since 2007, while expectations of a potential interest rate hike by the Bank of Japan pushed 10-year borrowing costs to a three-decade high.

Furthermore, rising energy prices due to ongoing tensions between the US and Iran and uncertainty surrounding the Strait of Hormuz stoked inflation worries and weighed on gold.