XAU/USD: The gold price declines as bond yields rise

After a four-day run of gains, the precious metal was weighed down by a significant increase in Treasury bond yields.

Gold prices declined on Tuesday and continued to decline in the early Wednesday trading session. A rise in Treasury yields weighs on the yellow metal after investors' fears of a banking crisis were allayed by the US government's intervention in the financial system.

The price of the precious metal hovered near $1,880 per ounce as of the beginning of Wednesday's European trading session, after shedding 0.5 percent on Tuesday and another 1 percent during the first deals of the day. Investors typically favour higher benchmark Treasury yields over zero-yield bullion.

Tuesday marked the end of gold's four-day winning strea