XAU/USD drops to $4,480 as rising Treasury yields and inflation concerns fuel global rate hike bets.
Gold prices fell to $4,480 during early Asian trading on Wednesday, marking their lowest level since March 30. The decline comes as persistent inflation fears drive expectations for higher global interest rates, lifting Treasury yields and strengthening the USD.
US 30-year Treasury yields surged as much as 7 basis points to 5.20%, a level unseen since the eve of the 2007 financial crisis. The 10-year yield climbed 10 basis points to 4.69%, its highest since early 2025, before paring gains to around 4.66%. Analysts cited rising real rates worldwide and a stronger dollar as key pressures on gold.
Geopolitical tensions, including stalled progress in reopening the Strait of Hormuz, have further stoked inflation concerns. Reports of potential US actions against Iran added to market uncertainty, reinforcing bets on tighter monetary policy from global central banks.