Gold Hits 10-Week Low as Bond Yields Soar Above Rising Inflation

AI desk brief

Gold fell to a 10-week low in London after hotter-than-expected US CPI pushed Treasury yields and the dollar sharply higher. Spot gold dropped $75/oz to $4,079 and set a near-10-week low around $4,090 in the 3pm London benchmark, while silver slid more than $2/oz to a 12-week low of $56.58 before recovering above $57.

The macro backdrop turned markedly bearish for bullion: the DXY rose 0.5% to a fresh 19-month high, 2-year Treasury yields jumped to 4.92%, and the 10-year yield moved to 5.31%, implying the highest real rate above core inflation since June 2007. Fed pricing also firmed, with futures putting roughly even odds on another rate hike this month.