Gold Falls Amid Hawkish Central Bank Stance and Rising Bond Yields

Gold prices have fallen by 3.56% to $4,167 amid growing expectations of a more restrictive policy stance from major central banks.

The recent trend is partly driven by global inflationary pressures, which are leading central banks to tighten their monetary policies.

This shift in policy direction has made government bonds more attractive than non-yielding assets like gold, causing investors to reallocate capital towards sovereign bond markets.

In the US, market sentiment suggests a 70% likelihood that the Federal Reserve will raise its benchmark interest rate by 25 basis points to 4.25% at its October meeting.