# Gold Faces Selling Pressure from Rising Yields and Dollar

> Rising US bond yields and dollar recovery weigh on gold prices.
- Title: Gold Faces Selling Pressure from Rising Yields and Dollar
- Summary: Rising US bond yields and dollar recovery weigh on gold prices. Higher US Treasury yields and a stronger dollar reduce gold's appeal as central banks…
- Keywords: us bond yields, dollar recovery, gold price, federal reserve, treasury yields, central banks, world gold council, us dollar index, money, business, Gold, Faces
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/news/how-rising-us-bond-yields-and-dollar-recovery-is-weighing-on-gold/articleshow/134686294.cms
- Author: ET CONTRIBUTORS
- Published: 2026-10-05T05:11:00+00:00
- Read time: 1 min
- Topics: us bond yields, dollar recovery, gold price, federal reserve, treasury yields, central banks, world gold council, us dollar index, money, business
## Gold Under Selling Pressure
Gold faces renewed selling pressure after the US Fed raised its benchmark interest rate by 25 basis points to 3.75-4.00 percent on September 16.
## Treasury Yields Rise to 5.25%
The benchmark 10-year US Treasury yield recently moved towards 5.25 percent, its highest level since 2007, while the Dollar Index recovered above the 101 mark.
## Stronger Dollar and Higher Yields
Higher US interest rates improve the relative attractiveness of dollar-denominated assets, encouraging global capital flows towards the greenback.
## Yield Impact on Gold
For gold, this combination is particularly challenging as a stronger dollar makes bullion more expensive for buyers using other currencies.
## Central Bank Gold Purchases
Central banks purchased a net 289 tonnes of gold during Q2 2026, compared with a revised 57 tonnes in the first quarter.
## World Gold Council Outlook
The World Gold Council expects gold to retain a mild positive bias towards year-end with limited scope for major rallies or prolonged sell-offs.
## Geopolitical Uncertainty Impact
Escalating West Asian tensions have limited gold's support as higher oil prices reinforce inflation, yields and interest-rate expectations.
## Gold's Price Trajectory
Gold may remain range-bound with intermittent volatility as US Treasury yields and the dollar are key triggers for its next major directional move.
## What Happens Next
A sustained decline in bond yields or a clear shift towards easier US monetary policy may be necessary to trigger another major rally for gold.
## Key takeaway

Higher US Treasury yields and a stronger dollar reduce gold's appeal as central banks continue buying.