Gold Tumbles Below $4,200 as Higher Yields and Fed Rate Hike Bets Mount

Gold prices fell sharply below the $4,200 threshold on Monday as rising bond yields and expectations of further Federal Reserve interest rate hikes pressured non-yielding metals. Spot gold traded down at $4,146.32 per ounce after falling as low as $4,145.88, while gold futures dropped over 3% to around $4,176.80 to $4,180.80. The downturn was driven by climbing U.S. Treasury yields, with the 10-year yield touching 5.22% amid rising inflation expectations. Markets are pricing in a 64.2% chance of a 25 basis point Fed rate increase in late October.