Gold Slumps Amid Rising Oil Prices and Elevated Yields

Gold prices continued to slide on Monday as investors digested rising crude oil prices and the impending Federal Reserve interest rate decision. The precious metal fell to $4,330, down 7.76% from its highest point this month, as US bond yields remained elevated.

The surge in energy prices, particularly Brent's jump to $108, has led to concerns about inflation, which is expected to remain high due to the ongoing crisis between the United States and Iran. The increased volatility has put pressure on gold, which does not generate income and relies on real interest rates for support.

The 10-year Treasury yield rose to 4.98%, attempting to break above the crucial milestone of 5%. Similarly, the 30-year yield surged to 5.367%, further weighing on gold's prospects. The Fed's decision on Wednesday will be closely watched, and a less aggressive message than expected could lead to a sharp drop in yields and a rebound in gold.