Gold Slips to 3-Month Low as Dollar, Yields Strengthen

Gold fell to its lowest level since early August on Monday as the US dollar and Treasury yields strengthened, with crude oil futures also rising after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz. Gold's correlation with the US dollar index reached -0.93 over five sessions, while its link with nominal Treasury yields tightened to roughly -0.98 for the 2-year note. The US 2-year yield rose about 55 basis points over 20 sessions, placing the move in the 98th percentile since 1988. Gold is testing support at $4,220, a level that has acted as both support and resistance this year. A break below could target $4,165 and $4,115, while a hold might see a rebound toward $4,245 and $4,300.