Gold slid as much as 2% to its lowest in nearly nine months on Wednesday as elevated U.S. Treasury yields and a stronger dollar hammered the metal’s appeal.
Spot gold was down 1.2% at $1,718.09 per ounce by 11:56 a.m. ET (1656 GMT), after falling to its lowest since June 2020 at $1,701.40 earlier in the session. U.S. gold futures lost 0.9% to $1,718.80.
”As real rates continue to rise, that’s challenging gold. The rates markets are also adding pressure on valuations for all asset classes, and as a result, gold is a casualty,” said TD Securities commodity strategist Daniel Ghali.
Benchmark U.S. 10-year Treasury yields crept back towards a one-year peak reached last week, while the dollar rose.