Fed Expectations and Bond Yields Trigger Selling Wave in Gold and Silver
Expectations that the Fed will raise interest rates and the rise in bond yields led to sharp declines in precious metals, putting pressure on gold and silver prices.
On the first trading day of the week, sharp selling occurred in precious metals as expectations strengthened that the US Federal Reserve might raise interest rates and bond yields increased, causing commodities, notably gold and silver, to lose value.
Sharp Selling Wave in the Market
Precious metals faced strong selling pressure on the first trading day of the week, catching investors' attention.
Expectations that the Fed might raise interest rates rose to 88 percent, negatively affecting these non-yielding metals.
Decline in Precious Metals
Silver dropped by 3.3 percent on an ounce basis, declining to the level of 62.3 dollars.
The ounce price of gold lost 1.5 percent in value and traded at the level of 4,284 dollars.
Declines in Other Commodities
The price of platinum showed a decrease of 2.3 percent, falling to 1,757 dollars.
The price of palladium dropped by 2.2 percent down to the level of 1,274 dollars.
Market Evaluation from Experts
Saxo Capital Head of Commodity Strategy Ole Hansen stated that core inflation data and oil prices created pressure on gold.
Hansen emphasized that for gold prices to move upward, the level of 4,400 dollars must be breached.