{
  "id": 1690975,
  "title": "Gold falls as rising US Treasury yields strengthen the US Dollar",
  "url": "https://urgent.news/2026/08/18/gold-falls-as-rising-us-treasury-yields-strengthen-the-us-dollar",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T10:51:51.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/gold-falls-as-rising-us-treasury-yields-strengthen-the-us-dollar-202608181051"
  },
  "original_language": "en",
  "account": "Gold prices slipped on Tuesday as the US Dollar strengthened and long-term US Treasury yields rose, putting downward pressure on the precious metal. By the time of publication, XAU/USD was trading at $4,393, marking a 0.50% decline for the day. The 10-year Treasury yield climbed closer to 4.75%, while the 30-year yield surpassed 5.30%, the highest level since 2007. This yield increase is part of a larger global bond sell-off triggered by inflation and fiscal concerns, with yields in the UK, Germany, and Japan also hitting multi-decade highs. Higher yields make non-yielding assets like Gold less attractive, as the opportunity cost rises. Experts at Brown Brothers Harriman note that the recent surge in crude oil prices is contributing to bond yield increases and potentially exacerbating already fragile fiscal conditions. However, they caution that any further strengthening of the US Dollar is likely to be shallow and short-lived. The US Dollar Index, which measures the Greenback's value against six major currencies, sits at 99.65, having rebounded from a 5-year low of 99.30 on Monday. Energy-related inflation concerns remain a key driver, as the ongoing US-Iran standoff over the Strait of Hormuz continues. President Trump has indicated that Washington will not extend the Iran memorandum of understanding, which expired on Monday. Despite higher oil prices fueling the likelihood of a Federal Reserve interest rate hike, recent weak US employment and consumer spending data, combined with milder inflation reports, have dampened expectations of an imminent rate increase. The Fed's probability of leaving rates unchanged next month, as indicated by the CME FedWatch Tool, stands at around 65%. For Gold, the near-term outlook points to a consolidation phase. While fading expectations of a September Fed rate hike provide some support, the stronger US Dollar and higher Treasury yields limit Gold's upside potential. With a relatively quiet US economic calendar this week, traders will focus on the Federal Open Market Committee (FOMC) Meeting Minutes release on Wednesday and developments in the Middle East. On the 4-hour chart, XAU/USD remains technically bullish, staying above the 50-period Simple Moving Average ($4,365) and the 100- and 200-period SMAs. However, the pair is range-bound between $4,300 and $4,450. The Relative Strength Index (RSI) is at 52, near neutral, while the Moving Average Convergence Divergence (MACD) is slightly below the zero line, indicating weakening bullish momentum. The Average Directional Index (ADX) at 30 suggests moderate trend strength. Moving higher, a breach of the upper range boundary at $4,450 could expose the psychologically significant $4,500 mark, potentially opening the door for a fresh bullish run. On the downside, a break below the 50-period SMA ($4,365) offers immediate support, followed by the lower range limit at $4,300. A decisive drop below this level would expose the 100-period SMA ($4,225) and the 200-period SMA ($4,151). Gold has historically served as a store of value and a hedge against inflation and currency depreciation. Central banks are the largest holders, using Gold to bolster their currencies during turbulent times. In 2022, central banks added 1,136 tonnes of Gold, a record annual purchase worth around $70 billion. High Gold reserves can enhance a country's perceived economic and currency strength. Gold and the US Dollar have an inverse relationship, with Gold prices rising as the Dollar weakens and vice versa. Additionally, Gold is inversely correlated with risk assets, with stock market rallies typically weighing on Gold prices. Geopolitical instability or recession fears can also drive Gold prices higher due to its safe-haven status. As a yield-free asset priced in US Dollars, Gold's value is heavily influenced by the Dollar's performance.",
  "summary": "Gold (XAU/USD) attracts sellers on Tuesday, snapping a two-day winning streak as a firmer US Dollar (USD) and rising long-term US Treasury yields weigh on the precious metal. At the time of writing, XAU/USD trades around $4,393, down 0.50% on the day.",
  "key_points": [
    "Gold prices fall 0.50% as US Dollar strengthens",
    "10-year Treasury yield nears 4.75%, 30-year yield surpasses 5.30%",
    "Higher yields make non-yielding assets like Gold less attractive"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "MarketWatch Top",
        "title": "Stocks keep shrugging off rising Treasury yields. Here’s the level that could finally trigger a selloff.",
        "url": "https://urgent.news/2026/08/18/stocks-keep-shrugging-off-rising-treasury-yields-heres-the-level-that",
        "published": "2026-08-18T11:39:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}