Gold Prices Drop Below $4,300 Amid Rising Dollar and Treasury Yields Before Fed Decision
Gold prices fell below $4,300 an ounce on Tuesday as the U.S. dollar and Treasury yields rose ahead of the Federal Reserve's upcoming monetary policy decision. Spot gold dropped to $4,290.39 at one point after falling more than 1% in the previous session. Gold futures also declined by 0.5%. The rise in interest rates is making non-yielding assets like gold less attractive compared to yield-generating investments. Markets are currently pricing a roughly 92% chance of a Fed rate hike this week, which has contributed to investor caution around gold and other precious metals. Meanwhile, the benchmark 10-year U.S. Treasury yield briefly hit 5%, its highest level in nearly three years. Gold prices have dropped over 3% so far in September after reaching above $4,600 an ounce at the end of August. Oil price increases due to supply disruptions from attacks on Saudi Arabia's East-West pipeline are also drawing attention for their potential inflationary impact and influence on Fed policy.
Topics: fed policy gold treasury yields us dollar