Gold Falls on Rising U.S. Treasury Yields Amid Inflation,...
Over the past eight sessions, gold prices have experienced consecutive declines alongside a rise in the benchmark 10-year U.S. Treasury note yield, reaching levels not seen since 2008 earlier this week.
The minutes from the Federal Reserve's July meeting revealed that a majority of senior officials expressed the likelihood of requiring further tightening of monetary policy in order to counter inflation, citing persistent "significant upside risks."
During Wednesday afternoon, Treasury yields maintained their upward trajectory, with the 10-year Treasury note's yield (BX:TMUBMUSD10Y) climbing 3 basis points to 4.25%. The 2-year Treasury yield (BX:TMUBMUSD02Y), which is sensitive to policy changes, also saw an increase of 2 basis points, reaching 4.97% as per FactSet data.
Amidst escalating crude oil prices and stronger-than-anticipated U.S. economic expansion, concerns grew regarding a potential resurgence in inflation. This scenario could potentially lead to continued interest rate hikes by the Federal Reserve and other central banks, subsequently exerting downward pressure on the value of gold.
GOLD BUY 1891-1892💯
✅ TP1: 1900
✅ TP2: 1905
🛑 SL: 1888
The minutes from the Federal Reserve's July meeting revealed that a majority of senior officials expressed the likelihood of requiring further tightening of monetary policy in order to counter inflation, citing persistent "significant upside risks."
During Wednesday afternoon, Treasury yields maintained their upward trajectory, with the 10-year Treasury note's yield (BX:TMUBMUSD10Y) climbing 3 basis points to 4.25%. The 2-year Treasury yield (BX:TMUBMUSD02Y), which is sensitive to policy changes, also saw an increase of 2 basis points, reaching 4.97% as per FactSet data.
Amidst escalating crude oil prices and stronger-than-anticipated U.S. economic expansion, concerns grew regarding a potential resurgence in inflation. This scenario could potentially lead to continued interest rate hikes by the Federal Reserve and other central banks, subsequently exerting downward pressure on the value of gold.
GOLD BUY 1891-1892💯✅ TP1: 1900
✅ TP2: 1905
🛑 SL: 1888
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