Gold retreats as bond yields surge to highest levels in decades
GLD•Gold falls as Treasury yields and oil 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 XAU= had eased 0.5% to $4,393.11 per ounce by 9:51 a.m. EDT (1351 GMT), while U.S. gold futures GCcv1 for December delivery dropped 0.6% to $4,448.
"The steepening of the yield curve poses a headwind for gold, while firmer oil prices are also a factor behind today's weakness," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
"Despite the current pullback, we remain bullish on gold and see further upside potential, though the market may need to work through a period of consolidation before renewed buying interest emerges," Grant said.
Analysts say investor buying may need to accelerate
"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.
