Precious Metals Tumble Amid Higher Yields and Stronger Dollar

Precious metals took a hit last week as higher energy prices, a stronger US dollar, and rising Treasury yields weighed on gold and silver. The precious metals complex was pressured by elevated oil prices, which reinforced concerns over persistent inflation. A stronger-than-expected US economic data also increased expectations that the Federal Reserve may need to keep monetary policy tighter for longer or raise interest rates further to contain inflation.

The 10-year and 30-year US Treasury yields climbed to their highest levels since 2007 and 2004, respectively, while the dollar index strengthened to around 101. This combination of higher yields and a firmer dollar reduced the appeal of non-yielding assets and kept precious metals under pressure.

Hawkish commentary from several Federal Reserve officials further reinforced expectations of another rate hike before year-end. The recent correction may attract renewed buying interest from long-term investors, although volatility is likely to remain elevated in the short term as markets reassess the Fed's policy path.