Gold and Silver Prices Slip as Bond Yields Reach Multi-Decade Highs
The price of gold and silver slipped back on Tuesday as global stock markets fell from last week's fresh records.
Global bond yields reached multi-decade highs, with long-term interest rates increasing due to concerns over inflation. However, Anshul Pradhan, head of US rates research at investment bank Barclays Capital, attributes the rise in long-term rates to 'the budget deficit outlook, AI-related corporate issuance, and the changing Treasury buyer base.'
Nicky Shiels, precious metals strategist at MKS Pamp, notes that 'this is not just a US story' as the same bond-market fragility hits UK debt prices.
The price of gold fell back below $4400 per troy ounce, down 1.0% from an overnight high but 9.6% higher from this time last month. Silver bullion prices erased most of yesterday's rise, falling through $65 to drop 2.5%.
The US Dollar held steady on the currency market, while 30-year US Treasury bond yields reached 5.31%, their highest since June 2007.