Gold Extends Losses as Yields Rise on Persistent Inflation

Gold prices have extended their decline as rising U.S. Treasury yields weigh on the precious metal. ING analysts Warren Patterson and Ewa Manthey attribute the retreat to investors reassessing the outlook for U.S. monetary policy after data showed inflation remains stubbornly high.

The stronger yield environment reduces the appeal of non-yielding assets like gold. The reassessment comes as market participants adjust expectations for interest rate cuts, with persistent inflation suggesting the Federal Reserve may keep rates higher for longer.

No specific price levels or targets were provided in the note. The trend reflects broader market sentiment that higher-for-longer rates could continue to pressure gold in the near term.