Gold prices drop over 2%, slide to 2-month low as Treasury yields, US dollar climb - Livemint

AI desk brief

Gold sold off 2.3% to an intraday low of $4,066/oz, its weakest since Aug. 5, as the U.S. dollar index rose 0.5% and Treasury yields pushed to multi-decade highs. The 10-year yield briefly hit 5.35%, the highest since 2002, while the 30-year bond yield traded near a 24-year high at 5.655%, underscoring a real-yield headwind for non-yielding bullion.

Macro pressure is being reinforced by sticky inflation concerns, heavy sovereign and corporate borrowing, and expectations the Fed will keep rates on hold this month but may still hike in December with an 84% probability priced by FedWatch. Investors now await FOMC minutes for more guidance; near-term risks remain skewed bearish for gold if yields and the dollar stay elevated.