Gold Prices Plunge Amid Stronger Dollar and Higher Treasury Yields

Gold prices fell to $4,261.42 on Tuesday, extending losses for a second consecutive day and nearing a break below their six-week low of $4,253.73 an ounce.

The decline was driven by a stronger US dollar, which rose 0.2% against a basket of global currencies, making dollar-denominated gold less attractive to buyers holding other currencies.

The yield on the 10-year US Treasury note also surged to a 19-year high of 5.041%, providing further support for the US dollar and weighing on gold prices.

The Federal Reserve is set to begin its monetary policy meeting later today, with markets pricing in a 92% probability of a 25-basis-point interest rate hike, which would mark the first increase in borrowing costs in the United States since July 2023.