Gold Tumbles Amid Rising US Treasury Yields and Tightening Expectations

The gold market is under pressure due to rising U.S. Treasury yields and firm expectations of further Federal Reserve tightening, causing investor appetite for gold to wane.

Spot gold dropped as much as 4% to $4,111 an ounce on Monday, its lowest since August 5, amid surging U.S. Treasury yields and oil prices.

Money managers' net long positions in gold fell to their lowest level since late July, and gold-backed exchange-traded funds saw outflows of 1.6 metric tons last week, according to the World Gold Council.

Chinese demand for gold has softened due to local premiums falling to zero ahead of the October holiday period, further weakening investor positioning in the market.