Gold Under Pressure: Rising Yields and Strong Dollar Weigh on Precious Metal

Rising Treasury yields and a stronger US dollar have put gold under pressure. Despite strong physical demand, including investment demand from China, the precious metal has begun to decline.

Gold's sensitivity to Federal Reserve interest rate forecasts is a major concern for investors. Even falling oil prices are not providing relief, as plunging Brent prices typically lead to lower Treasury yields and push gold into consolidation amid a strong dollar.

China's precious metal imports have exceeded the total for all of 2025, with over 1,000 tonnes imported between January and August. Chinese gold-focused ETFs also increased their holdings by 44 tonnes in August, an 18% year-over-year increase.

The current market conditions suggest that a continued rally in Treasury yields and the US dollar could push gold even lower. Traders are advised to remain patient and buy on dips over the medium and long term or consider short-term sell positions if the price falls below $4,250.