Gold prices declined to nearly $4,125 during the early Asian session on Tuesday, influenced by rising US Treasury yields and growing expectations of further interest rate hikes by the Federal Reserve, FX Street reported.
The increase in Treasury yields typically puts pressure on non-yielding assets like gold, as investors seek higher returns from fixed income securities. The anticipation of additional rate hikes by the Fed has further dampened demand for gold as a safe-haven asset.
For Japanese investors, this movement underscores the ongoing impact of US monetary policy shifts on precious metals, which often influence risk sentiment and portfolio adjustments in the region's FX and commodities markets.