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Gold drops more than 3% as Treasury yields hit 2007 highs

XAU/USD slid to about $4,139 after topping $4,280, with US 10-year yields climbing to 5.27% before easing to 5.23%.

Reported · Written up by our desk · Precious Metals

Gold fell sharply at the start of the week, dropping more than 3.4% as US Treasury yields surged and oil stayed relatively elevated, even as it retreated from daily highs, according to FXStreet.

The outlet said XAU/USD traded around $4,139 after peaking near $4,280, with price pressure attributed to rising inflation expectations alongside volatility tied to mixed headlines about a potential US-Iran deal.

FXStreet reported that the US 10-year Treasury note yield rose to its highest level since June 2007 at 5.27% before trimming to about 5.23%, while reports of Iran agreeing to halt uranium enrichment were denied by other outlets.

It added that Fed speakers warning about elevated US inflation increased the likelihood of further inflation driven pressure, adding to the downside momentum for gold.

Latest closeGold $4,320.50 ▲0.5%

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