Gold falls near six week low as rate hike bets increase
Spot gold prices fell to 4,539 dollars as rising Treasury yields and inflation fears boosted bets on rate hikes. Investors now await Fed policy minutes.
Gold fell 0.6% to $4,539.54 per ounce on Tuesday as rising interest rate expectations pressured the non-yielding metal. The price remains near a seven-week low of $4,479.54 reached on Monday. Higher borrowing costs increase the opportunity cost of holding bullion, making it less attractive compared to interest-bearing assets.
### Inflation Fears Drive Rate Hike Bets Hawkish Federal Reserve expectations are weighing on the precious metal, ActivTrades analyst Ricardo Evangelista said. These expectations stem from inflationary fears linked to a standoff in the Persian Gulf. Benchmark 10-year United States Treasury yields steadied near a 12-month high as energy prices rose.
