Gold Price Tumbles Amid Rising Oil Prices and Elevated Yields

The gold price has continued to fall as investors react to rising crude oil prices and the upcoming Federal Reserve interest rate decision. The current environment is pressuring gold due to its lack of income generation, as yields on US bonds remain at an elevated level. The ten-year yield has jumped to 4.98%, attempting to cross the important milestone of 5%. Additionally, other global bond yields have surged in recent months.

The ongoing crisis between the United States and Iran is driving up crude oil prices, with Brent reaching $108 and WTI hovering near its highest level since May 20th. The sharp rise in energy prices has led to increased inflation expectations, which may lead the Federal Reserve to hike interest rates further. This hawkish stance is likely to continue at the upcoming FOMC meeting on Wednesday.