Gold prices have been impacted by the surge in the U.S. dollar

Strong U.S. Dollar: Gold prices have been impacted by the surge in the U.S. dollar, which has gained strength against other currencies. A strong dollar typically puts pressure on prices, as the two often have an inverse relationship.

Rising Bond Yields: Bond yields, especially the benchmark U.S. 10-year bond yields, have been at 16-year highs. Higher yields make non-interest-bearing assets like gold less attractive in comparison, as investors seek higher returns from interest-bearing securities.

U.S. Economic Data: Strong U.S. economic data, including increased job openings in August, has contributed to the perception that the U.S. economy is performing well. This has led to expectations of further monetary policy tightening by the Federal Reserve, which can weigh on gold prices.

Federal Reserve Policy: Federal Reserve officials have indicated that rising long-term Treasury yields are seen as a sign that their tight-money policies are effective. While they acknowledge the yield increases, they are not expressing alarm about their potential impact on the economy.

Auto Industry Resilience: Improved vehicle supplies and resilient demand for the latest models have led to increased U.S. new vehicle sales for top global automakers. Economic strength in various sectors can reduce the appeal of safe-haven assets like gold.

ETF Holdings: The SPDR Gold Trust, the largest gold-backed exchange-traded fund (ETF), reported a decline in its holdings, indicating reduced investor interest in gold.