Gold Tumbles as Higher Yields Outpace Safe Haven Demand

Gold prices declined by as much as 4% on Monday to $4,111 an ounce due to rising US Treasury yields. The 10-year Treasury yield reached its highest level since June 2007, surpassing safer alternatives that pay interest.

The increase in yields has made it more challenging for gold to compete with these interest-paying investments. Money managers' net long positions (bullish bets) in gold dropped to their lowest since late July, according to data from the Commodity Futures Trading Commission (CFTC).

Additionally, gold-backed exchange-traded funds (ETFs) saw outflows of 1.6 metric tons last week, indicating that some investors are pulling money from this category.