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Gold falls below $4,150 as US yields and oil prices climb

Gold dropped more than 4% to around $4,110, its lowest level since Aug. 5, after 10-year Treasury yields hit their highest since June 2007.

Reported · Written up by our desk · Precious Metals

Gold prices slid to around $4,125 in the early Asian session on Tuesday, with selling pressure linked to higher US Treasury yields and expectations for additional Federal Reserve interest rate hikes, according to FXStreet.

FXStreet reported that gold tumbled by more than 4% to about $4,110 in the prior session, its lowest since Aug. 5, as oil prices rose alongside the move in bond yields.

The outlet also cited a view that the combination of high bond yields and higher oil prices has weighed on gold, while the non-yielding metal faces increased opportunity costs in a high interest rate environment.

FXStreet added that the backdrop for oil included developments involving Iran and the US, after Iranian officials said diplomacy is the only way to resolve their conflict with the US and Israel.

Latest closeGold $4,147.50 ▼4.0%

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