Gold Prices Fall Amid Stronger Dollar, Rising Yields

Gold fell about 0.5% to 0.6% as a firmer U.S. dollar and rising Treasury yields made the non-yielding metal less attractive. Investors were focused on the Federal Reserve’s upcoming policy decision and U.S. inflation data, with markets largely expecting rates to remain unchanged; persistent inflation could nevertheless keep policy and yields higher. A rebound in technology stocks also curbed some safe-haven demand, while uncertainty around the Strait of Hormuz limited selling pressure. In Pakistan, local gold prices were unchanged despite the decline in international bullion, and traders watched for a breakout from the market’s recent trading range.