Rising Bond Yields Pressure Gold
The rise of 10-year bond yields is pushing gold prices lower.
Too little corroboration in the last 3 days to call a trend (46 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Mining stocks also sank, tracking a drop in gold prices as higher Treasury yields and oil prices reduced demand for the precious metal."
"While the prospect of no rate hike is generally positive for non-yielding gold, rates that remain elevated for an extended period could weigh on bullion by making bonds more attractive to investors."
"Interest rates are the single biggest lever. Because gold yields nothing, rising rates raise the cost of holding it compared with bonds or cash deposits, which usually weighs on the price."
"At the same time, higher bond yields and a stronger dollar may cause further price fluctuations."
"Gold, traditionally viewed as a safe-haven asset and an inflation hedge, tends to lose some appeal when interest rates are expected to remain elevated because the metal does not generate any yield."
"rising US real and bond yields, along with a strengthening US dollar, continue to weigh on bullion"
"The World Gold Council has warned that the current consolidation in gold prices could be a temporary phase as the strengthening US dollar and rising US treasury yields could weigh on the bullion."
"Gold prices remain cautious of higher US bond yields because they don't generate regular income."
"US government bond yields have jumped in the past few months. The two-year yield jumped to 4.33%, while the ten-year moved to 4.70%. As a result, gold is now competing with higher-yielding bonds."
"Rising bond yields increase the opportunity cost of holding gold because the metal does not provide regular income or interest. At the same time, yields on the benchmark 10-year US Treasury note climbed to their highest level in more than a year."