Gold faces headwinds from rising yields and Fed rate-hike bets

Gold has fallen 6 percent this month after an 11 percent rally in July-August, pressured by rising US Treasury yields and renewed expectations of Federal Reserve rate hikes, with the metal hovering near $4,300 an ounce. The 30-year Treasury yield has approached 5.5 percent, its highest in over two decades, while CME FedWatch shows a 68 percent probability of an October rate hike, up from 57 percent. Analysts see near-term pressure but note central bank buying could provide support. Central banks continued accumulating gold through the summer, with China buying 20.2 tonnes in August and Poland among top buyers. Analysts expect gold to remain range-bound unless yields ease, the dollar weakens, or geopolitical risks intensify.