Gold Under Pressure from Rising Bond Yields, Weakening Dollar Ties

Gold prices are feeling pressure from rising US bond yields and hawkish Federal Reserve policy expectations. The cost of holding non-yielding gold is increasing as a result, but gold remains resilient due to weakening traditional relationships with the US dollar.

The safe-haven demand, central bank purchases, and inflows into gold ETFs are supporting gold's price. Rising oil prices and geopolitical tensions are adding inflation concerns, while fiscal worries are pushing bond yields higher.

If 10-year Treasury yields surpass 5%, it could challenge gold further, but ongoing fiscal and currency risks may sustain investor interest in gold as a hedge.