Commodities
Global Gold Prices Plummet Amid Rising Yields and Stronger Dollar
Global gold prices plummeted by over $121 per ounce on September 1st, closing at around $4,329.98 per ounce. This marked a significant drop of approximately 2.72% from the previous day's price of $4,451.14.
The decline was attributed to various factors, including the rise in US bond yields and the strengthening of the US dollar. The yield on 10-year US Treasury bonds briefly rose to around 4.798%, its highest level since January 2025, making gold a less attractive investment option.
The hawkish message from Fed Chairman Kevin Warsh at Jackson Hole continues to impact the market, with the probability of the Fed raising interest rates by at least 0.25 percentage points at its September 15-16 meeting now standing at around 66.2%.