US Yields Soar to 2007 Highs as Gold Faces Critical Test

The 10-year US Treasury yield closed at its highest level since July 2007 on Wednesday, reaching 5.11 percent.

The five-year yield also crossed 5 percent for the first time since 2007, and October's interest rate hike is now priced at about 70 percent after a strong business activity reading from flash PMIs.

Gold prices settled at $4,324.40 on Wednesday, down $52 from the previous day, while Brent crude oil settled near $103 per barrel.

According to Przemysław K. Radomski, CFA, of Gold Trading Alert, gold's price is now at a critical level, with its neckline at $4,320, and a daily close below this level could complete the pattern with a target below $4,000.