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Rising Treasury yields coincide with a COMEX gold drop
Front-month COMEX gold futures ended Sept. 24 at $4,263 per ounce, 20.0% below the Jan. 29 record settlement of $5,318.40, even as the nominal 10-year Treasury yield hit 5.2%.
Gold has more than doubled since early 2022 despite U.S. bond yields climbing, a divergence that panelists at the Precious Metals Summit discussed as a sign bullion may be regaining a monetary role, Mining.com reports.
The story points to a market split around late September, with front-month COMEX gold futures ending Sept. 24 at $4,263 per ounce, down 20.0% from their Jan. 29 record settlement of $5,318.40.
According to Mining.com, the same day the nominal 10-year U.S. Treasury yield reached 5.2%, its highest level since 2007.
Sprott Senior Portfolio Manager John Hathaway, speaking at a summit panel moderated by Northern Miner Group President Anthony Vaccaro, said rising yields are no longer automatically a negative for gold, while the report also flags that any capital shift toward bullion and large producers may reach junior miners unevenly.
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