Gold spot prices eased to $4,157 as rising US real yields offset macro-driven demand, capping the bullion's recent upside potential.
Gold spot prices are facing downward pressure as elevated real yields in the United States act as a primary constraint on the precious metal's performance. Despite persistent macroeconomic uncertainty that typically favors safe-haven assets, the strength of US yields is currently overriding these factors, leading to a retreat from the session high of $4,219 to a close of $4,157.
Gold spot traded as high as $4,219 and closed at $4,157 per ounce.
Elevated US real yields are currently acting as a cap on bullion's upside, offsetting the typical demand driven by macro uncertainty.
Gold spot retreated from a session high of $4,219 to settle at $4,157 per ounce. UOB Global Economics & Markets Research attributes the decline to persistent pressure from elevated US real yields, which continue to constrain the precious metal's performance despite broader macroeconomic uncertainty.
Gold is facing downward pressure because elevated US real yields increase the opportunity cost of holding non-yielding assets like bullion.