Gold retreats as bond yields surge to highest levels in decades
GLD•Other precious metals weaken
Among other metals, spot silver slipped 2.6% to $64.08 per ounce, platinum lost 2.3% to $1,729.22 per ounce and palladium dipped 3% to $1,292.31.
Gold falls as yields and energy prices rise
Gold prices fell on Tuesday as Treasury yields surged to their highest levels in decades, with rising energy prices on escalating U.S.-Iran tensions further stoking inflation worries and weighing on non-interest-bearing bullion.
Spot gold had eased 1% to $4,369.82 per ounce by 12:12 p.m. EDT (1612 GMT), while U.S. gold futures for December delivery dropped 1.1% to $4,425.10.
Middle East tensions and Fed minutes in focus
Prospects of a U.S.-Iran peace deal have been stalled after President Donald Trump said Tehran was unlikely to accept terms needed to end the conflict, while Iran vowed a "fully offensive" military posture and said the Strait of Hormuz would remain closed until Washington meets conditions of an interim agreement.
Higher energy prices reinforce the case for higher rates to curb inflation, despite recent U.S. economic data showing unexpected job losses, cooler-than-expected inflation and weak retail sales for July.
Investors will now look to the release on Wednesday of the minutes of the Federal Reserve's most recent policy meeting for guidance on the interest rate path.
"Current investor buying is more consistent with a price closer to $4,000/oz than $5,000/oz, which is associated with investment demand growth of 21% YoY (year over year)," Bank of America analysts said in a note.
"Hence, investor purchases likely need to accelerate for gold to push towards $5,000/oz."
