Gold and Silver Fall to Two-Week Lows as Global Bond Yields Surge, Suppressing Precious Metals

BlockBeats News, September 1st, according to Bitget market data, the price of gold and silver continued its recent downward trend. Influenced by a global sell-off in major bond markets and a rapid rise in long-term yields, the safe-haven demand for precious metals was temporarily suppressed by high-interest rate pressure. Spot gold fell by nearly 1.8% intraday to around $4370 per ounce, hitting a new low since August 19; spot silver fell by nearly 3% to around $64.5 per ounce.

On the same day, the yield on the U.S. 10-year Treasury note rose above 4.75%, the yield on the German 10-year bund rose to a 15-year high, and the yield on the Japanese 10-year government bond surpassed 3% for the first time since 1996. Market concerns about the escalation of the situation in the Middle East driving up oil prices and inflation may force major central banks to maintain tightening policies or even raise interest rates further, thereby continuing to increase the opportunity cost of holding the non-yielding asset gold.

Next, the market will focus on the ADP employment data on September 2nd and the U.S. non-farm payroll report on September 4th to assess the Fed's interest rate hike expectations and the future trend of bond yields.