Gold prices slid 2% to $4,286 per ounce in the week ending 25 September, as a sharp rise in U.S. Treasury yields pushed the dollar higher and dampened demand. The decline followed a 4.93% jump in two‑year yields and a 5.27% climb in ten‑year yields, the highest levels seen since mid‑2007.
Praveen Singh, Head of Currencies and Commodities at Mirae Asset ShareKhan, warned that any temporary rally could be a selling point. He cited the ongoing U.S.–Iran standoff and the lack of clarity over sanctions relief as key factors keeping gold in check. Gold slid to $4,111 on Monday, the lowest since August 5, before recovering slightly after reports of possible sanctions relief.
Oil prices, which had dipped 2.13% on Friday, rebounded on Monday amid uncertainty over the Strait of Hormuz, but eroded later in the day. Saudi Arabia restored most of its East‑West pipeline flow to 3.5 mbpd after drone attacks, easing pressure on the Strait and giving traders a temporary reprieve.
ETF flows into gold rose to 100.80 Moz, up 58 tonnes year‑to‑date, while CFTC net‑long positions fell to 131,334 lots, the lowest bullish stance in eight weeks. Investors are watching key U.S. data due on September 28, including the Dallas Fed manufacturing index, which could further influence the market.
Analysts expect continued volatility as the U.S. Treasury releases Fed meeting minutes next week, with traders eyeing October 28 for potential rate‑hike signals that could reshape the gold landscape.