Commodities
Gold Tumbles Below $4,150 Amid Rising Yields and Oil Prices
Gold prices have plummeted to near $4,125 during the early Asian session on Tuesday, falling by over 4% to $4,110 in the previous session. This decline marks its lowest point since August 5.
The selling pressure on gold is attributed to rising US Treasury yields and expectations of further Federal Reserve interest rate hikes, which reduce demand for the non-yielding metal.
Tim Waterer, chief market analyst at KCM Trade, noted that 'the high bond yields and high oil price tandem continue to act as a thorn in gold’s side.' He emphasized that oil prices have risen on mixed signals about oil flows, keeping inflation front and centre for investors.