The post Gold tumbles amid rising US yields and geopolitical worries appeared on BitcoinEthereumNews.com.

Gold price dips below $2,400, trading at $2,389, extending losses for the second consecutive day. Rising US Treasury yields and a stronger US Dollar weigh on bullion prices. Geopolitical tensions in the Middle East, with Hezbollah attacks on northern Israel, could support Gold as a safe haven. Gold price dropped below $2,400 on Tuesday, extending its losses for the second consecutive day as US Treasury yields rose amid an improvement in market mood. Rising tensions in the Middle East capped losses in the golden metal. At the time of writing, the XAU/USD trades at $2,389, down by 0.82%. The recovery in the financial markets resumed on Tuesday, as the Nikkei recovered and closed 10% above its opening price, following Monday’s 12% plunge. Therefore, European and US equity indices posted solid gains. Aside from this, the Greenback remains bid, a headwind for Bullion prices. The US Dollar Index (DXY), which tracks the buck’s performance against six currencies, rose 0.30% to 102.97. Another reason for the drop in the non-yielding metal is elevated US yields. The US 10-year benchmark note coupon climbed ten basis points (bps) to 3.892%, even though traders are bracing for a 50-bps interest rate cut by the Federal Reserve at the upcoming September meeting. Nevertheless, geopolitical woes loom after Hezbollah launched attacks on northern Israel. A conflict escalation could bolster Gold’s prospects and even pave the way for reclaiming $2,400. On the central bank space, Federal Reserve policymakers led by San Francisco Fed Mary Daly said the dual mandate risks had come into balance and that they’re open to lower borrowing costs in coming meetings. Daily digest market movers: Gold price on the defensive amid risk-on mood Worries of a US recession had faded, shown by market mood. Despite this, traders expect the Federal Reserve (Fed) will cut…

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Filed under: News - @ August 7, 2024 3:22 am