Gold prices fell in early Asian trade, with sentiment appearing to be negatively impacted by escalating tensions in the Middle East. A stronger U.S. dollar and rising bond yields also contributed to the decline, according to ANZ Research.
The precious metal's performance is often sensitive to geopolitical events, with investors typically seeking safe-haven assets during times of increased global uncertainty. However, a strengthening dollar can make gold more expensive for holders of other currencies, potentially dampening demand. Rising bond yields also present an alternative investment avenue for capital that might otherwise flow into gold.