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Gold is in focus as renewed pressure from expectations for higher interest rates and rising U.S. Treasury yields reduces the appeal of holding a metal that generates no income.
The Federal Reserve's policy path has become the central variable for precious metals, with investors now treating every rate signal as a direct read on the complex. The rate dynamic The logic runs one way.
When bond yields move higher, holding gold carries an increasing opportunity cost against yield-bearing alternatives.
A Treasury that pays its holder competes directly for the same defensive capital, and as the rate outlook firms, that gap in relative attractiveness widens against the metal's favor.
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