Gold continues to decline after Treasury yields rise economy

Gold prices fell today, Wednesday, after recording their lowest level in 7 months during the previous session, under the pressure of rising US Treasury bond yields, while the fading prospects of reaching a permanent peace agreement between the United States and Iran led to continued escalation of fears about inflation and the Federal Reserve raising…
Federal (US Central Bank) interest rates.

The price of gold in spot transactions fell 1.1% to $3,964.8 per ounce, at the time of writing the report.

The price of gold fell in the previous session to $3,942.99 per ounce, its lowest level since last November.

US gold futures for August delivery lost ground 1.5% To $3978.2 today.

Yesterday, gold recorded its largest quarterly decline since 2013, and declined for the fourth month in a row in June, after tension in the Middle East stoked inflation fears and strengthened expectations of a US interest rate hike.

“The pressure from rising bond yields is what appears to be pushing gold lower,” said Tasty Live’s head of global macroeconomics, Ilya Spivak. “The US dollar rose slightly at the same time, which kind of confirms what’s going on.”

The dollar rose, making gold priced in the US currency more expensive for holders of other currencies, and yields on standard 10-year US Treasury bonds also rose.

The CME Group’s Fed Watch tool indicates that traders expect a probability of approximately 67% to raise interest rates in ⁠⁠⁠⁠September, which reflects increasing expectations for tightening monetary policy.

Investors are awaiting the June employment data that ADP will release later today, and the non-farm payrolls numbers tomorrow, Thursday, to obtain more indications of the path of Federal Reserve interest rates, which may shape gold trends in the near term.

Oil prices rose after Iran announced that it would not meet with the two American envoys who headed to the region, following renewed hostilities, which weakened the prospects of achieving diplomatic progress in the near term.

For other precious metals:

• The price of silver in spot transactions fell 1.4% to $57.75 per ounce.
• The price of platinum fell 0.6% to $1,542, after hitting its lowest level since last November.
• The price of palladium fell 0.4% to $1,199.34.