Gold and silver fall to two-week lows amid rising global bond yields

Huo Xing Finance reports that on September 1, according to market data, gold and silver prices continued their recent downward trend, as selling pressure in major global bond markets and rapidly rising long-term yields temporarily suppressed safe-haven demand for precious metals. Spot gold fell nearly 1.8% intraday to around $4,370 per ounce, hitting its lowest level since August 19; spot silver dropped nearly 3% to around $64.5 per ounce. On the same day, the U.S. 10-year Treasury yield rose above 4.75%, Germany’s 10-year yield reached a 15-year high, and Japan’s 10-year yield broke above 3% for the first time since 1996. Market participants are concerned that escalating tensions in the Middle East could push oil prices and inflation higher, potentially forcing major central banks to maintain tight monetary policies or even implement further rate hikes, thereby continuing to raise the opportunity cost of holding non-yielding assets like gold. The market will now focus on the ADP employment data on September 2 and the U.S. non-farm payrolls report on September 4 to gauge expectations for Fed rate hikes and the future trajectory of bond yields.