Gold Tumbles to Key Level as Rate Hike Odds Near 70% and Treasury Yields Soar
Gold prices plummeted to $4,325.50 an ounce on Tuesday morning, slipping below two key levels set by Blue Line Futures' Phil Streible just a day prior.
Streible told Kitco News that he would change his mind on gold if it closed below $4,350. The metal has already fallen significantly from its record high of above $5,500 an ounce in late January and is still down roughly 7% on the year.
The decline in gold prices comes as the 30-year Treasury yield sits near 5.28%, with the 10-year yield topping 4.75% for the first time since January 2025. Long-dated yields in Germany, Britain, and Australia have also reached multi-year or record highs.
Streible argued that the inflation driving rate hikes is not demand-driven, but rather supply shocks such as tariffs on Canadian goods and rising oil prices due to the Iranian conflict. He believes that raising rates would be a policy mistake, citing the flattening yield curve as evidence.