The strengthening US dollar and rising US Treasury yields push gold prices to a more than two-week low.

1. In early Asian trading on Wednesday, spot gold extended its decline and at one point touched $4,314.83 per ounce, the lowest since August 14, down about 0.3%. A stronger US dollar and rising US Treasury yields jointly weighed on the performance of the non-yielding asset, gold.2. The escalation of Middle East conflicts has pushed up global energy prices, intensifying inflation concerns and driving US Treasury yields higher. Federal Reserve Governor Barr stated that if inflation cannot cool rapidly, the central bank should raise interest rates. After Federal Reserve Chairman Waller’s hawkish speech last week, market expectations for a rate hike in September have continued to rise. A stronger US dollar also makes gold, which is priced in dollars, more expensive for buyers holding other currencies.3. The market is awaiting the ADP employment report and Friday’s non-farm payroll data for clues on the interest rate outlook. Previous data showed an increase in US job openings in July, but hiring remained sluggish, indicating that the labor market is still stagnating. If employment data continues to show signs of economic slowdown, it may weaken the Federal Reserve’s rationale for raising rates this month, thus easing some of the pressure on gold.