Gold prices edged lower on Tuesday, with the XAU/USD pair trading at $4,157, down 0.37%, according to FX Street. The decline came as US Treasury yields resumed their upward trend ahead of the release of key US inflation figures.
Rising Treasury yields typically strengthen the US dollar and increase the opportunity cost of holding non-yielding assets like gold, putting downward pressure on the precious metal. Investors are closely watching the upcoming inflation data for cues on the Federal Reserve’s next moves.
For Japanese investors, this movement underscores the ongoing sensitivity of precious metals and currency markets to US macroeconomic indicators, which can influence risk sentiment and capital flows in the region.