Metal Prices Are Down Again As Treasury Yields Edge Higher
Gold closed today's trading session below $4,000 per ounce, whereas silver traded as low as $55.32 as U.S. Treasury yields rose on Thursday, with the 10-year benchmark climbing above 4.55%
U.S. government bond yields pushed higher Thursday, as crude oil held near elevated levels amid escalating hostilities between Washington and Tehran, offsetting a midweek boost from softer producer price data.
The yield on the benchmark 10-year Treasury note added to 4.559%, while the policy-sensitive 2-year yield climbed over to 4.153%. The 30-year bond yield ticked up fractionally to 5.087%.
Oil markets remained on edge, with Brent crude hovering above $84 a barrel and West Texas Intermediate price topping $78, as traders tracked the ongoing situations in the Strait of Hormuz. The energy complex has become the primary driver of near-term inflation expectations.
On the other hand, spot gold price has been disappointing, it traded below $4,000 per ounce, and silver has been hit even harder, with silver price today went as low as $55.32
Fresh data continued to paint a picture of a resilient American consumer. Initial jobless data for the week ended July 11 was announced at 208,000, comfortably below the 218,000 consensus forecast from economists. Retail sales matched expectations with a 0.2% monthly gain, though lower prices at the pump restrained service station receipts.
Treasury markets received a significant tailwind yesterday after the producer price index fell 0.3% in June, a considerably milder effect than the flat estimate economists had penciled in. The back-to-back cooler inflation prints this week have given bond bulls some ammunition.
However, Dallas Federal Reserve President Lorie Logan tempered any dovish enthusiasm earlier today, once more calling to increase the interest rates. Currently, many traders have been pricing in the possibilities of the Fed to raise interest rate at least once before the end of the year.
Related assets: Gold, Silver, Palladium, Platinum, Crude Oil, Brent Crude