Gold Prices Decline Amid Treasury Yields Pressure

Gold prices dropped last week as rising U.S. Treasury yields reduced the appeal of the non-yielding precious metal. This came during a shortened trading week due to the holidays.

Markets are closely monitoring the return of President-elect Donald Trump and the potential impact of his inflationary policies on the U.S. Federal Reserve’s direction for 2025.

Gold futures for February 2025 delivery fell to $2,631.9 per ounce, marking a 0.5% decline for the second consecutive week.

Bob Haberkorn, senior market analyst at « R.J.O Futures, » noted: « Treasury yields are slightly higher here, keeping gold under pressure until the end of the day. We are in a weak market during the holiday season. »

Despite recent declines, gold has surged 28% this year, peaking at $2,790.15 on October 31, driven by the Federal Reserve’s monetary easing cycle and rising global tensions.