Gold falls to two-week low as rising Treasury yields, dollar weigh

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.

Sept 1 (Reuters) - Gold dropped more than 2% on Tuesday to a two-week low as elevated Treasury yields and a stronger U.S. dollar weighed on prices, while bullion's break below its 200-day moving average triggered additional technical selling.

Spot gold XAU= was down 2% at $4,360.39 per ounce at 09:58 a.m. ET (1358 GMT), after touching its lowest since August 19 at $4,362.89 earlier in the session. Bullion dropped below its 200-day moving average, which is currently at around $4,528, on August 28.

U.S. gold futures GCcv1 fell 1.6% to $4,409.30.

"We're seeing some technical selling pressure... bond yields globally are at highs not seen in years. So that's all working to pressure the gold market," said Jim Wyckoff, a market analyst at American Gold Exchange.

"Gold price has dropped below its 200-day moving average, which is an important technical signal."

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/

Although gold is traditionally viewed as a hedge against inflation, rising interest rates and higher yields on Treasuries typically pressure gold as they raise the opportunity cost of holding the non-yielding asset. The dollar also gained, making greenback-priced gold more expensive to overseas buyers. USD/