Gold Prices Bounce Back Modestly Amid Ongoing US-Iran Tensions and Rising Yields

Gold prices rebounded modestly on Tuesday, gaining 0.6% to reach $4,139.91 per ounce after a sharp 4% plunge on Monday.

The precious metal faces headwinds from climbing bond yields and US dollar strength, despite the ongoing US-Iran dispute over the Strait of Hormuz that has driven up crude oil prices and heightened inflation concerns.

Treasury yields on 10-year bonds reached a 19-year peak, making gold less attractive as an investment vehicle.

Gold's decline this month stands at around 7% following Fed rate increases and hawkish policy signals.