Yield Surge Sends Gold Price Tumbling
The 10-year US Treasury yield has reached its highest level since July 2007, closing at 5.11 percent on Wednesday. The five-year yield also crossed 5 percent for the first time since 2007.
Gold prices declined to $4,324.40 on the day, down $52 from the previous close and $60 in two sessions. The metal is now testing a key support level at its neckline, with a daily close below this point potentially triggering a target price below $4,000.
The US dollar index rose against every major currency, and Brent crude oil settled near $103 per barrel.
Analyst Przemysław K. Radomski notes that the current situation is different from last week's decline, as there are no bullish intraday reversals this time. He also points out that gold's price has fallen significantly since early August, with the metal reaching its lowest close in several weeks.