Gold falls amid rising U.S. bond yields
Gold prices have declined significantly as U.S. Treasury bond yields rose, with spot prices falling by 1.12% to $4,431 per ounce and futures contracts dropping by 1.4% to $4,418. This decline follows the metal reaching its lowest level in over three months. The drop comes amid market anticipation of U.S. employment data that will provide new insights into the likelihood of interest rate hikes this month, with investors currently estimating a 66% chance of a US rate increase. This also coincides with the Federal Reserve's move toward tighter monetary policy, which increased the opportunity cost of holding non-yielding gold, leading to declines in other precious metals such as silver, platinum, and palladium.
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