Gold Fails to Rally Despite Falling US Treasury Yields as Energy Inflation and Strong Dollar Weigh on Prices

English summary

Spot gold fell to around 4106 on Tuesday, hitting a four-day low. Despite a marginal decline in US Treasury yields, the traditional geopolitical safe-haven narrative failed as rising oil prices boosted inflation stickiness, strengthened hawkish monetary policy expectations, and increased 'petrodollar' settlement demand supported the dollar. Market consensus suggests that energy inflation must cool down and Middle East tensions ease for gold to begin a trend rally.