Gold Prices Plummet Below $4,300 Amid Rising Treasury Yields and Fed Rate Hike Expectations

The gold market has been affected by rising U.S. Treasury yields and heightened expectations of Federal Reserve rate hikes, pushing prices below $4,300.

U.S. Treasury yields surged to above 5% on Tuesday, their highest level since 2007, which is putting pressure on gold's safe-haven appeal.

The combination of high oil prices and elevated U.S. inflation data has intensified investor expectations that monetary policy will maintain higher interest rates, making capital more likely to reallocate toward interest-bearing U.S. dollar assets.