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PRECIOUS-Treasury yields, dollar weigh on gold amid inflation concerns
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PRECIOUS-Treasury yields, dollar weigh on gold amid inflation concerns
May 19, 2026 7:35 AM

(Recasts for U.S. market open)

* Benchmark 10-year Treasury yields near a more than

one-year high

* Brent crude oil prices hold above $110 a barrel

* Minutes of Fed's April policy meeting due on Wednesday

By Anjana Anil

May 19 (Reuters) - Gold prices fell by more than 2% on

Tuesday as a firmer U.S. dollar and persistent inflation fears

kept interest rate hike expectations and Treasury yields high.

Spot gold fell 2% to $4,474.40 per ounce by 9:41 a.m. ET

(1341 GMT). Prices fell to their lowest level since March 30

earlier in the session.

U.S. gold futures for June delivery lost 1.8% to

$4,476.80.

"We are seeing a multi-country rise in real rates around the

world, and that is really weighing mostly on gold. The dollar is

also stronger, that's a negative," said Edward Meir, an analyst

at Marex.

Benchmark 10-year U.S. Treasury yields were near a

more than one-year high, while the U.S. dollar strengthened.

Both rose as investors eyed a possible hawkish shift by the

Federal Reserve to curb energy-driven inflation.

Higher Treasury yields raise the opportunity cost of holding

non-yielding gold and a stronger dollar makes greenback-priced

commodities more expensive for holders of other currencies.

Brent crude oil prices were elevated, fanning concerns of rising

global inflation as fuel costs surge.

"While the structural investment case for gold remains

largely intact, shorter-term macro developments have created a

more challenging backdrop for prices," Ole Hansen, head of

commodity strategy at Saxo Bank, wrote.

"Once immediate energy-related pressures begin to ease,

central bank demand may re-emerge as a more dominant

driver."

Market participants now await the minutes of the Fed's

latest policy meeting, which are scheduled to be released on

Wednesday, as they seek to gauge the monetary policy path.

Spot silver dipped 5.7% to $73.25 per ounce, platinum

lost 2.8% to $1,923.55, and palladium dropped 3.3%

to $1,371.25.

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