Gold Losing Its Shine As Bond Yields Rise

Gold is facing tough competition this year as the preferred haven for cautious investors, according to an analysis by Krystal Hur for CNN.

Gold prices settled at $1,831.80 per troy ounce last week, marking its lowest close since March.

Gold prices settled at $1,831.80 per troy ounce on Thursday, marking its lowest close since March.

This decline comes after the price of the precious metal has decreased over the past few months, with the selloff accelerating in recent weeks due to a surge in bond yields and the strengthening dollar.

Investors tend to favor government bonds over gold when yields are high because they offer regular coupon payments. A rise in the value of the dollar makes it more expensive for foreign investors to purchase gold, as its price is denominated in dollars.

Gold prices reached a near-record high earlier this year as the collapses of several US regional banks and persistent inflation led investors to seek refuge from market turmoil.

Investors also speculated that a banking crisis would prompt the Federal Reserve to change its course from its interest rate hiking campaign, a move that could also increase the appetite for gold.

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