24-year peak in US bond yields and the impact of Fed minutes on markets
While US 30-year bond yields exceeding 5.70% and hitting a 24-year high caused volatility in global markets, the Fed minutes signaled additional interest rate hikes.
As the US 30-year bond yield exceeded 5.70% to reach a 24-year high, shaking the markets, spot gold dropped to as low as $4,066, while the Fed minutes and statements from officials signaled further rate hikes.
24-Year High in US Bond Yields
While selling pressure continues in the US bond market, the 30-year US bond yield surpassed 5.70% to reach its highest level in 24 years. The 10-year bond yield is hovering above 5.30%.
Latest Status in Gold Prices
In global markets, the ounce price of gold dropped to $4,066 in yesterday's trading, seeing the lowest level of the last two months, and the daily close took place at $4,111. In the spot market, the price of gram gold started the day at 6,538 TRY.
After starting the day with an increase, gram gold is trading at 6,515 liras, while quarter gold is sold at 10,760 liras and Republic gold at 42,850 liras.
Fed Minutes and Interest Rate Hike Signals
In the minutes of the Fed's September 15-16 meeting, it was seen that the majority of members evaluated that another interest rate hike by the end of the year might be appropriate. Kansas City Fed President Jeff Schmid stated that interest rates may need to rise for inflation.
Global Inflation Pressure and Energy Markets
While attacks on Aden International Airport in Yemen and Ukraine's moves targeting oil facilities in Russia increased energy supply concerns, Brent crude maintains its course above 100 dollars.
Expert Evaluations and ETF Demand
Saxo Bank Commodity Strategist Ole Hansen noted that sales by hedge funds were balanced by steady ETF demand, and total assets in gold ETFs have reached 3,145 tons, the highest level in four years since August.