Commodities
Global Bond Sell-Off Triggers Gold Price Plunge
The global bond market sell-off has led to a sharp decline in gold prices, with XAUUSD falling by 3.4% amid rising yields.
The yield of 30-year Treasuries tested the 5.58% level, pushing bond traders to worry about the long-term sustainability of U.S. finances.
According to FedWatch Tool, the probability of a rate hike at the next meeting in October has increased to 70.3%, putting significant pressure on gold as it pays no interest.
The stronger dollar also put additional pressure on gold, forcing investors to sell.
Silver and platinum followed suit, with silver diving amid rising yields and platinum testing support at $1700-$1720.