US Yields Surge, Weighing Heavily on Gold Prices

Gold prices fell on Tuesday as US Treasury yields surged, putting pressure on bullion. The precious metal retreated to $4,364, down over 1.10%. The rise in US yields is a headwind for gold, which bears no interest.

The situation remains tense between the US and Iran, with US President Donald Trump stating that Iran is unlikely to accept Washington's terms to end hostilities. This uncertainty has kept oil prices elevated, favoring a Federal Reserve interest rate hike.

US economic data also showed weaker-than-expected jobs reports and lower inflation, which forced investors to price out rate hikes in 2026. The Federal Reserve will release policy meeting minutes on Wednesday, providing insights into the expected path of future interest rates.