Gold prices fell sharply below ,100 per troy ounce on Thursday, pressured by rising US Treasury yields and a stronger US Dollar. The XAU/USD pair dropped over 1.35% to ,069, erasing gains from the previous session. The decline was driven by improved US economic data, particularly the Labor Department's jobs report, which reinforced expectations of prolonged high interest rates. The US Dollar Index (DXY) climbed to 105.5, while 10-year Treasury yields rose to 4.35%, making gold less attractive compared to yield-bearing assets. The move highlights the inverse relationship between gold and the US Dollar. A stronger Dollar makes gold more expensive for holders of other currencies, reducing demand. Additionally, higher Treasury yields increase the opportunity cost of holding non-yielding gold. Traders are now monitoring the Federal Reserve's stance on interest rates and upcoming inflation data to gauge the Dollar's trajectory. For investors, the decline signals potential volatility in the precious metals sector. If Treasury yields remain elevated, gold could test key support levels at ,000. Conversely, a reversal in the Dollar's strength or a drop in yields might trigger a rebound. Market participants should watch the Fed's policy statements and non-farm payrolls data in the coming weeks for directional clues.

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