Gold fell sharply on Monday, September 28, reaching its lowest price since August 5. Spot gold was down about 3.5% during the US trading day. It edged back up the following morning, but remained near that seven-week low.
The move came as US Treasury yields climbed and the dollar strengthened. Gold does not pay interest, so some investors may prefer interest-bearing assets when yields rise. A stronger dollar can also make gold more expensive for buyers using other currencies.
Geopolitical tension often draws attention to gold, but it does not guarantee that prices will rise: interest rates, the dollar and investor demand can all matter at the same time.