Gold falls below $4,500 on rising global rate hike bets

• Gold price tumbles to around $4,480 in Wednesday’s early Asian session. 

• Increase bets that global central banks may hike interest rates, which weighs on the Gold price. 

• Trump threatened to resume strikes on Iran in the coming days. 

Gold price (XAU/USD) faces some selling pressure near $4,480 during the early Asian session on Wednesday. The precious metal drops to its lowest since March 30 as persistent inflation fears keep interest rate hike expectations and Treasury yields high.

The US 30-year Treasury yields rose as much as seven basis points to 5.20% on Tuesday, a level last seen on the eve of the 2007 global financial crisis. Meanwhile, US 10-year Treasury yields climbed as much as 10 basis points to 4.69%, the highest since early 2025, before the move pared to around 4.66%.

"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.

A lack of progress in reopening the Strait of Hormuz continued to raise fears of inflation and increase bets that global central banks may hike interest rates. Bloomberg reported on Tuesday that US President Donald Trump threatened to resume attacks on Iran in the coming days as part of the push for a deal to end the war, after he said he had just called off a US attack.