Why gold and silver prices are on the decline as bond yields rise - Global News

AI desk brief

Gold and silver are under pressure as rising bond yields make non-yielding metals less attractive: the 10-year U.S. Treasury yield is cited around 5.25%, up roughly half a point from last month, while December gold is around US$4,164/oz, down more than 8% month-on-month, and December silver is about $61.55/oz, also down about 8%. The article frames the move as a classic real-yield/rates headwind for bullion, with Colin White of Verecan Capital Management saying investors are increasingly preferring Treasuries over metal assets that pay no income.

It also links the yield move to inflation and geopolitical risks, including the Iran conflict, higher oil prices and the Bank of Canada’s warning that a prolonged Strait of Hormuz disruption could lift inflation further. The piece notes the recent Fed rate hike and suggests expectations for tighter policy are feeding higher yields, which is bearish for precious metals near term.