Spot gold closed lower on Tuesday, weighed down by a synchronized rise in US Treasury yields and the dollar.
The precious metal’s decline came as markets digested fresh geopolitical developments in the Strait of Hormuz, which have pushed oil prices higher and reinforced the case for a stronger greenback.
The move in gold reflects a broader rotation away from non-yielding assets.
As Treasury yields climbed, the opportunity cost of holding gold increased, prompting investors to trim positions.
The dollar’s strength further compounded the pressure, making gold more expensive for holders of other currencies.
This session’s action follows a period of volatility for precious metals.