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Gold falls nearly 3% as Treasury yields climb and rate hike bets grow
The move puts XAU/USD around $4,156, the lowest level since Aug. 5, as oil related inflation concerns bolster expectations of further Fed tightening.
Gold prices started the week under heavy selling pressure, falling nearly 3% as bets for additional Federal Reserve rate hikes strengthened alongside rising Treasury yields, FXStreet reported. XAU/USD was trading around $4,156 at the time of writing.
FXStreet tied the backdrop to ongoing volatility in oil, which the outlet said has reinforced concerns about inflation. The firm pointed to Middle East supply disruption risk linked to the Strait of Hormuz after US and Israel joint strikes on Iran.
The outlet also noted that US President Donald Trump rejected Iran’s latest proposal to reopen the strait within seven days, while indicating US negotiators expect further talks this week. Iran’s foreign minister, Abbas Araghchi, maintained that Tehran would not back down from demands including sanctions relief and access to frozen assets.
FXStreet said gold has gained little from its traditional safe-haven and inflation-hedge role since the war began. The article ended mid sentence, with additional context not included in the provided text.
Latest closeGold $4,320.50 ▲0.5%