Gold Tumbles to 6-Week Low as 10-Year Yield Hits 5.14%, Highest Since 2007
RING sits 41% above its 52-week low of $58.21.
Summary
Gold futures fell 1.3% to $4,281.30/oz, the lowest settlement since August 6, as Treasury yields surged to multiyear highs. The 10-year yield touched 5.14% intraday, a level not seen since July 2007, while the 2-year hit 4.94% and the 30-year reached 5.37%, the highest in 22 years. Fed officials struck a hawkish tone, with Chicago Fed President Goolsbee warning the energy shock may be persistent inflation, and traders now price a 77% chance of an October rate hike. The stronger dollar and rising real yields directly pressure gold, which offers no yield. This macro shift is a headwind for gold ETFs like RING, which track gold miners and are highly sensitive to bullion prices.
At the time of this announcement, RING was trading at $81.90 on NASDAQ in the Finance sector. The 52-week trading range was $58.21 to $100.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.