Gold Plummets as U.S. Dollar Surges and Bond Yields Rise

The price of gold dropped to its lowest level in over six months as the surging U.S. dollar and rising global bond yields weighed on the precious metal. Gold has fallen 3.8% in September, failing to attract investors seeking a safe haven despite stock market volatility. The strength of the U.S. dollar makes commodities priced in dollars more expensive for users of other currencies, while higher bond yields increase the opportunity cost of holding nonyielding assets. However, gold's decline is expected to be gradual rather than sudden, as institutional buying and concerns over China's property market turmoil may revive its haven appeal in the near term.