Gold, Silver Fall as Global Bond Yields Rise and Rate-Hike Bets Strengthen

  • Gold fell nearly 1.8% to about $4,370 on Sept. 1 and was reported around $4,375 on Tuesday, while silver dropped nearly 3%.
  • U.S. 10-year Treasury yields rose above 4.75%, and markets priced a 66% chance of a Federal Reserve rate hike later this month.
  • Gold declined for three straight sessions as global yields and inflation concerns outweighed haven demand; employment data are next in focus.

Gold and silver prices fell sharply in the latest sessions as bond yields rose across the United States, Europe and Japan, reducing the appeal of non-interest-bearing precious metals. Spot gold dropped nearly 1.8% to about $4,370 an ounce on Sept. 1 and was reported around $4,375 on Tuesday, its lowest level since Aug. 19, while silver fell nearly 3% to about $64.5. Gold’s three-session decline exceeded 3.5%, reversing part of an August rally of roughly 10% that took bullion above $4,650 and lifted the SPDR Gold Shares ETF 9.84%. The U.S. 10-year Treasury yield rose above 4.75%, Germany’s 10-year yield reached 3.34%, and Japan’s 10-year yield surpassed 3% for the first time in nearly 30 years. Markets priced a 66% chance of a Federal Reserve rate hike later this month, with investors awaiting ADP employment data and nonfarm payrolls for policy clues. Escalating U.S.-Iran tensions supported oil and haven demand but also heightened inflation concerns, while billionaire investor John Paulson continued to hold substantial mining positions.

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