Higher U.S. Treasury yields and a stronger dollar weigh on precious metals as inflation concerns fuel expectations of tighter monetary policy.
Gold and silver futures fell sharply Friday, dragged down by a surging U.S. dollar and rising Treasury yields. Higher energy costs from Middle East tensions stoked inflation fears, reinforcing bets on Federal Reserve interest rate hikes.
Benchmark 10-year Treasury yields climbed to multi-week highs, reducing the appeal of non-yielding assets like gold and silver. Prior sessions saw modest gains in precious metals, but Friday’s sell-off erased those advances amid hawkish Fed rhetoric.
Market reaction was swift, with gold-backed ETFs like GLD and silver’s SLV extending losses. The shift underscores investor caution ahead of upcoming inflation data and Fed communications.