Gold drops more than 1% as Treasury yields rise
GLD•Other precious metals also decline
Among other metals, spot silver XAG= slid 2.3% to $64.99 an ounce, platinum XPT= fell 1.4% to $1,766.66 and palladium XPD= lost 1.6% to $1,334.88.
Gold falls as Treasury yields climb
Sept. 1 (Reuters) - Gold fell more than 1% on Tuesday, pressured by elevated U.S. Treasury yields, while markets awaited key U.S. labour market data for fresh signals on the Federal Reserve's monetary policy outlook.
Spot gold XAU= was down 1.4% at $4,386.37 an ounce by 1151 GMT after touching its lowest since August 19 at $4,362.89. U.S. gold futures GCcv1 fell 1% to $4,435.10.
Jobs data and geopolitical tensions in focus
Investors now turn their focus to the ADP employment report due on Wednesday and non-farm payrolls data on Friday for further economic policy clues.
While gold is typically seen as an inflation hedge, higher interest rates tend to diminish non-yielding bullion's appeal to investors.
On the geopolitical front, Trump threatened further strikes against Iran on Monday after the first exchange of direct attacks in a month, raising tensions in a conflict that had recently shifted into an economic standoff.
Rate expectations and bond selloff weigh on bullion
U.S. Treasury yields rose to their highest since January 2025 on Tuesday as rising tensions in the Middle East stoked inflation fears and triggered a global bond selloff. US/
"Bond yields around the world continue to rise following Kevin Warsh’s hawkish speech last Friday, thereby adding some downward pressure on gold prices," said Saxo Bank analyst Ole Hansen.
