Rising Bond Yields, Oil Prices Crush Gold's Yearly Gains

The price of gold has retreated significantly this year due to rising global bond yields and increasing oil prices. The SPDR Gold Shares ETF (GLD) has given up nearly its entire year-to-date gain, a sign that investors are reevaluating their asset allocations. The recent flare-up in tensions between the US and Iran has driven inflation expectations higher, which in turn is pressuring interest rates to rise.

The surge in bond yields is putting downward pressure on gold prices as investors seek safer assets with higher returns. Gold's ability to hedge against inflation is being diminished by the prospect of rising interest rates. The recent increase in oil prices has also contributed to the decline in gold prices, making it less attractive to investors.