Gold price falls! US Treasury yields and oil rise

2026-08-18 09:18:00 / EKONOMI&SOCIALE ALFA PRESS

Gold price falls! US Treasury yields and oil rise

Gold prices fell on Tuesday, weighed down by rising U.S. Treasury yields and oil prices, as investors await the release of minutes from the Federal Reserve's latest meeting for signals on U.S. monetary policy.

According to Reuters, spot gold fell 0.5 percent to $4,391.14 an ounce, while U.S. gold futures for December delivery fell 0.6 percent to $4,446.70 an ounce.

The rise in the yield on the benchmark 10-year US Treasury bond is putting pressure on gold, as it increases the opportunity cost of holding the precious metal, which does not generate interest.

At the same time, oil prices have risen after Iran declared that it had switched to a "full offensive" military posture, following the failure of talks on a permanent peace agreement with the United States.

 

Investors' attention is now focused on the Federal Reserve. Financial markets are currently pricing in a 65 percent chance that the US central bank will leave interest rates unchanged at its September meeting.

The minutes of the Fed's latest monetary policy meeting are expected to be released on Wednesday and could provide important signals on officials' stance on interest rates and the economic outlook.

A period of high interest rates and higher bond yields typically makes gold less attractive to investors, while geopolitical uncertainties and inflation could continue to support demand for the precious metal.

 

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