Gold Prices Fall as Treasury Yields Rise and Fed Rate Hike Expectations Grow
Gold and silver prices declined in early trade on September 2, weighed down by rising US Treasury yields, a stronger dollar, and growing expectations of a Federal Reserve rate hike. On COMEX, gold futures fell 0.98% to $4,353.10 an ounce after touching an intraday low of $4,350.10 an ounce.
Silver futures dropped 1.80% to $64.19 an ounce and hit a low of $64.15 an ounce. The weakness in precious metals comes amid a broader risk-off move in global markets, with Asian stocks falling sharply after renewed US strikes on Iran pushed oil prices higher.
Brent crude rose 0.7% to $95.34 a barrel, reviving concerns about inflation and making it harder for the Federal Reserve to ease monetary policy. US 10-year Treasury yields were around 4.80%, while the dollar index remained near a two-week high of 99.67.
The renewed escalation between the US and Iran has added another layer of uncertainty, with higher oil prices dominating investor sentiment. Gold typically comes under pressure when bond yields and the US dollar rise, making it relatively less attractive than interest-bearing assets.