Gold prices are holding around $4,550/oz following a debt markets continue to come under pressure, with a US Treasury-led sell-off that has pushed the 10-year yield toward 4.6%.
In turn this has prompted heavy losses in mining stocks. John Meyer, mining expert at London-based stockbroker SP Angel, highlighted that the move was driven by higher US yields, a firmer dollar and rising energy costs linked to the Iran conflict, which together have trimmed the appeal of government debt and encouraged profit-taking in gold despite ongoing central bank buying.
The near-term attention will be on any developments in Iran-US negotiations, with signs of progress potentially lifting gold but renewed tensions likely to reverse that effect.
