Gold Price Forecast: XAU/USD collapses below $1950 as US bond yields aim higher

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• Gold price drops on risk-appetite improvement, and US Treasury bond yields rising.
• US Treasury bond yields rise, with 10-year TIPS, a proxy for real yields advancing above 1.30%.
• The Federal Reserve will commence its two-day monetary policy meeting, expected to deliver a 25 bps rate increase.

Gold price is tumbling across the board, down more than $30.00 or 1.59%, as US Treasury bond yields rise, while risk appetite improvement dented Gold’s demand. Hence, US equities climb moderately as the Federal Reserve’s Open Market Committee (FOMC) meeting begins soon. At the time of writing, XAU/USD is trading at $1947.26 after hitting a daily high of $1985.08