Gold Prices Retreat as Dollar Strengthens and Treasury Yields Rise

Gold prices retreated on Tuesday during Asian trading hours after fluctuating at high levels. The market participants actively reduced some precious metals positions against the backdrop of a rebounding U.S. dollar and rising U.S. Treasury yields.

The U.S. Dollar Index had previously fallen to a three-month low near 98.76 but subsequently rebounded to around 99, driven by safe-haven demand and position adjustments.

A stronger dollar increases the cost of purchasing gold for non-U.S. investors and dampens the willingness of some capital to chase rising precious metal prices. However, the current rise in the dollar appears to be more of a short-term technical repair rather than a complete reversal of its previously weak medium-term structure.

The yield on the 10-year U.S. Treasury note has recently fluctuated around 4.7%, while the 30-year yield remains elevated above 5.2%. Yields had previously declined following the U.S. Treasury's announcement to expand long-term bond buyback operations, which spurred a rapid rise in gold prices.

The Jackson Hole Annual Economic Symposium will also be a central event for global financial markets this week. Investors are paying particular attention to policy remarks by Federal Reserve Chair Kevin Warsh.