Gold Under Pressure as US Yields Hit 18-Year High

The prices of gold and silver continue to face pressure due to rising interest rates in the US. The real yield on US treasury bonds has reached an 18-year high, causing investors to reassess their portfolios and opt for higher-yielding assets.

Gold futures have stabilized after a sharp decline at the beginning of the week, while silver prices continue to fall. The COMEX gold futures were flat at $4,168 per ounce, while silver futures dropped more than 1% to $61 per ounce.

Ole Hansen, head of commodity strategy at Saxo Bank, notes that the pressure from rising rates is becoming increasingly difficult to ignore. He points out that US 10-year real yields have climbed to an 18-year high near 2.85%, while short-term interest-rate markets are now pricing another three 25-basis-point Fed hikes by next April.