Gold Slumps as US Treasury Yields and Dollar Rise

The price of Gold fell on Tuesday as rising US Treasury yields and a firmer US Dollar weighed on the precious metal. The XAU/USD pair traded around $4,393, down 0.50% on the day.

The benchmark 10-year US Treasury yield climbed toward 4.75%, while the 30-year yield rose above 5.30%, its highest level since 2007. Higher yields increase the opportunity cost of holding non-yielding assets like Gold.

Strategists at Brown Brothers Harriman noted that the renewed upswing in crude oil prices is feeding through to rates and broader risk sentiment, pushing bond yields higher and worsening already fragile fiscal dynamics.