Gold Extends Decline as Higher Rates and Treasury Yields Pressure Prices

Gold extended its decline on the last trading day of August after international spot gold fell more than 3% in the previous session, its biggest one-day drop since June 10. According to Odaily, the pullback followed hawkish signals from Fed Chair Kevin Warsh and came as expectations for a weaker U.S. dollar faced pushback from higher interest rates and rising Treasury yields. Market observers said rising oil prices are adding to inflation pressure, which could keep the Federal Reserve at higher rates or lead to further hikes. They also said the U.S. fiscal deficit, expanding government debt, and Treasury intervention in the bond market may continue to support gold over the long term.