Gold prices fell Thursday as US Treasury yields rose, following the minutes of the Federal Reserve’s December meeting indicated the fastest rate hike in interest rates to curb inflation.
Yields on benchmark 10-year US Treasury bonds rose to the highest level since April 2021, raising the opportunity cost of holding gold.
Some investors consider gold a hedge in the face of high inflation, but it is vulnerable to rising US interest rates, which increase the opportunity cost of holders of the yellow metal that does not generate returns.
precious metals
Among other precious metals, silver fell in spot transactions 0.7% to $22.62 an ounce. Platinum fell 0.9% to $974.24 an ounce, while palladium fell 0.6% to $1,853.74 an ounce.
Source: Archyde.com