Gold Rises as Treasury Yields Decline

Gold gained 0.4% on Monday as lower government bond yields bolstered demand for the precious metal. A Reuters report did not specify the exact price per troy ounce.

Bond yields fell alongside a drop in crude prices. Brent dropped 1.7% to $107.95 a barrel, while U.S. crude declined 0.8% to $100.62, as investors monitored potential U.S. sanctions relief on Russian fuel.

Market sentiment was also pressured by concerns over heavy big-tech capital spending on artificial intelligence ahead of upcoming earnings releases. Asian equities declined, while U.S. index futures pointed higher. In China, equity losses moderated following data showing 4.5% GDP growth in the third quarter alongside stronger industrial output and retail sales.

Geopolitical risks remained elevated after Iran reported a vessel struck a mine in the Strait of Hormuz. In its market overview, Reuters identified gold as one of the primary assets benefiting from the retreat in bond yields.