Gold prices have maintained a broadly bearish momentum since last week, breaking below $4,500 amid continued inflation concerns and expectations of interest rate hikes following high US Treasury yields.
At 9.20am, gold prices were trading at $4,483, stable since their opening at Wednesday's Asian session.
US Treasury yields continued to rise on Tuesday, with the 30-year yield rising seven basis points to 5.20%, a level last seen before the 2007 global financial crisis.
Meanwhile, the 10-year US yield also rose 10 basis points to 4.69% before returning to around 4.66%, remaining at its highest level since early 2025.
The rise in bond yields has put significant pressure on the gold market as investors begin to shift to fixed-income assets that offer higher returns.
In addition, the strengthening US dollar has also added pressure on the yellow metal as gold becomes more expensive for holders of other currencies.
Marex analyst Edward Meir explained that rising real rates in various countries around the world are now the main factor weighing on gold prices.
The situation is seen as increasingly challenging as global central banks have the potential to maintain tight monetary policy for longer to control inflationary pressures that are still at risk of rising.
In other developments, geopolitical tensions in the Middle East continued to be a market concern after there was no clear progress on the reopening of the Strait of Hormuz.
The vital oil trade route remains a major concern as any disruption could send energy prices soaring and increase global inflationary pressures.
Bloomberg also reported that US President Donald Trump threatened to resume strikes on Iran in the coming days as part of efforts to reach a deal to end the war.
The statement came after he previously announced that the US strike had been called off at the last minute, adding to uncertainty in global market sentiment.
