Gold Price Plummets Amid Hawkish Fed Prospects and Rising Oil Prices

The gold price has extended its decline, reaching $4,295.45 as investors face significant pressure from surging US Treasury Yields and rising oil prices.

US 10-year bond yields hit a fresh almost three-year high at 4.81%, the highest level seen since November 2023.

Higher yields on interest-bearing assets are reducing the appeal of non-yielding assets like gold, according to strategists at BNY.

Fed Chairman Kevin Warsh's hawkish speech at Jackson Hole led overnight and swaps rates through the 2y yield all pricing in some tightening to come, with a 67% chance that the Fed will hike interest rates in the policy meeting this month.