Gold and Silver Sink as Real US Bond Yields Hit Near-Record Highs

AI desk brief

Gold and silver slumped in Asian trade as real U.S. yields hit near-record highs, with gold down 2.5% and silver 4.2% in Shanghai and London bullion at an 8-week low. The move came alongside a surge in 10-year Treasury yields to within 3 bp of the June 2007 high and TIPS real yields to 2.87%, reinforcing a tighter-for-longer rates backdrop that analysts said is particularly negative for precious metals.

Gold in London is now down 9.1% month-to-date to $4,153/oz, while the dollar’s rebound has amplified the decline in FX-adjusted terms. Shanghai gold fixed at ¥901.5/g, the lowest since early August, and Shanghai silver fell to below ¥14,960/kg; traders also pointed to higher odds of another Fed hike, with CME FedWatch showing a 2/3+ chance in October and 55% for December.