Rising oil prices and increasing U.S. Treasury yields are putting pressure on gold prices

Due to rising oil prices and increasing U.S. Treasury yields, gold prices fell on Tuesday, as the former two raised the opportunity cost of holding non-yielding gold. However, gold prices have still risen over 10% so far this month.

Analysts at Mitsubishi UFJ Financial Group stated that the rebound in investor demand and the increase in gold holdings by central banks continue to support gold prices. The minutes from the Federal Reserve's July meeting and Chairman Waller's speech at the Jackson Hole meeting will be key to assessing the interest rate outlook.