Gold Prices Decline as US Yields Surge Ahead of CPI Data

Key Facts

1Gold prices declined due to a significant surge in US Treasury yields.

2Markets are awaiting the release of US Consumer Price Index (CPI) data to assess the interest rate path.

Gold prices declined due to a significant surge in US Treasury yields. FXStreet reported that the precious metal is under pressure as markets await the release of US Consumer Price Index (CPI) data to assess the future interest rate path.

The surge in yields increases the opportunity cost of holding non-yielding gold, while an oil-driven inflation shock is boosting the US Dollar and interest rate hike bets. Investors are currently positioning ahead of the inflation data to gauge potential shifts in Federal Reserve policy.