Gold Prices Slide as Treasury Yields Surge, Fed Minutes in Focus

Gold prices fell sharply on Tuesday as surging U.S. Treasury yields and higher oil prices pressured the precious metal, while investors awaited the Federal Reserve’s July meeting minutes for fresh clues on the U.S. interest rate outlook.

Spot gold dropped 1.5% to $4,351.23 an ounce, while gold futures declined 1.6% to $4,404.57. The pullback followed a strong two-week rally fueled by weaker U.S. labor market and inflation data, which had reduced expectations for further Federal Reserve rate hikes.

Treasury market volatility weighed heavily on bullion. The U.S. 30-year Treasury yield climbed as high as 5.335%, its strongest level since June 2007, before giving up some gains. Rising long-term yields can make non-yielding assets such as gold less attractive to investors.

Despite relatively mild U.S. consumer and producer inflation readings, markets remain concerned about inflationary pressures from rising oil prices. Heavy bond issuance by major technology companies financing artificial intelligence infrastructure has also contributed to pressure on the debt market.

Investors are now focused on the Federal Open Market Committee’s July meeting minutes. Three regional Fed presidents dissented from the decision to leave interest rates unchanged, increasing interest in whether the minutes will reveal a more hawkish policy stance.

Geopolitical tensions are also influencing gold and oil markets. Brent crude rose to around $91 a barrel amid continued tensions between the United States and Iran over the Strait of Hormuz. President Donald Trump said there were no negotiations scheduled with Iran and maintained that the U.S. naval blockade remained in effect.

Trade Nation analyst David Morrison said escalating U.S.-Iran tensions could support the U.S. dollar, potentially creating additional headwinds for gold. The $4,400 level remains an important area for bullion, with traders watching whether it becomes resistance or a foundation for another rally.

Longer-term fundamentals remain supportive. Central banks purchased 244 tonnes of gold during the first quarter of 2026, while China added another 8 tonnes in April. ANZ expects geopolitical uncertainty and central-bank diversification to sustain gold demand, forecasting prices could reach $5,200 an ounce by year-end.