Gold Tumbles as Treasury Yields Rise, Fed Hike Odds Jump to 70%

Gold futures traded $4,412.20 on Wednesday after hitting a low of $4,355. The spot price of gold is at $4,350.48, down 5.25% for the week.

The US Treasury yield has been rising for six consecutive sessions, reaching 4.814%. This increase in yields is putting downward pressure on gold prices.

Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole last week also contributed to the decline in gold prices. He stated that the Fed would 'have work to do' if inflation doesn't return to the 2% target, which increased expectations of a September rate hike.