Gold Price Under Pressure as Oil Rises and Yields Increase

Gold prices have taken a hit in recent sessions, with a sharp decline in the first half of trading today. The ongoing macroeconomic backdrop remains bearish for gold and risk assets in general.

Rising crude oil prices are continuing to exert pressure on government bonds, causing their yields to increase. This, in turn, increases the opportunity cost of holding non-yielding assets like gold, as well as storage and insurance costs.

Until the dollar-debasement trade comes back into focus or the US dollar takes a drop, fiat alternatives like gold and Bitcoin may remain under pressure, especially in challenging risk environments.