Gold drops 3.1% to $4,151 as surging oil and Treasury yields pressure bullion

Gold prices dropped sharply by 3.1% to $4,151 per ounce during European trading, breaching key support below $4,200. Bullion came under severe pressure as soaring oil prices reignited inflation fears and drove global bond yields higher. The benchmark 10-year US Treasury yield reached 5.217% after touching a 2007 peak of 5.23%, up from 5.2% earlier in Asian trading where gold had initially declined 2% to $4,200 amid central bank reserve liquidations. Rising energy costs followed President Donald Trump's rejection of an Iranian proposal concerning the Strait of Hormuz.