Gold Tumbles to Two-Week Low on Rising Treasury Yields and Dollar Strength

Gold prices plummeted to a two-week low on Tuesday, weighed down by rising Treasury yields and a strengthening US dollar. The precious metal dropped over 2% to $4,360.39 per ounce at 09:58 ET, its lowest since August 19.

The decline was triggered by the break below the 200-day moving average, which currently stands at around $4,528. This technical signal has added to the selling pressure on gold markets.

'We're seeing some technical selling pressure... bond yields globally are at highs not seen in years,' said Jim Wyckoff, a market analyst at American Gold Exchange. 'Gold price has dropped below its 200-day moving average, which is an important technical signal.'

The US Treasury yields rose to their highest since January 2025 on Tuesday, as rising tensions in the Middle East stoked inflation fears and triggered a global bond selloff. The dollar's gain also made gold more expensive for overseas buyers.

Gold hit a three-month high last week before sliding over 3% on Friday, following US Federal Reserve Chair Kevin Warsh's warning of having 'more work to do' if inflation does not cool down to the central bank's 2% target. Traders now see a 66% chance of a rate hike this month.