Gold Slides as Fed Rate Hike Fears Intensify

Gold prices continued to decline as investors remain concerned about further interest rate hikes by the Federal Reserve. The US Treasury yields have climbed to their highest levels in nearly 20 years, with the five-year yield topping 5% for the first time since 2007.

The interest-rate swaps market is pricing in at least three more rate hikes by April next year, which has put additional pressure on gold prices. Gold has fallen about 20% since the war between the US and Iran began in late February.

The strong economic data from the US, including a surge in new orders and employment across manufacturing and services, has also fueled concerns that inflation will remain high. This has made gold less attractive as an investment option, given its lack of interest income.