Gold hits 7-week low as Treasury yields surge to multi-decade highs

Gold prices have dropped nearly 12% from their August highs, falling to a seven-week low of $4,111 per ounce. The decline has been driven primarily by rising US Treasury yields, which have emerged as the key headwind for the precious metal. The 30-year Treasury yield climbed to its highest level since 2002, while the 10-year yield approached its highest point since 2007. Elevated yields typically make non-interest-bearing assets like gold less attractive to investors, putting downward pressure on prices.