Gold and silver extended their recent slide on Sept. 1 as rising long-term government bond yields across major markets put pressure on precious metals, according to Bitget market data cited by BlockBeats. Spot gold fell nearly 1.8% intraday to around $4,370 per ounce, its lowest level since Aug. 19, while spot silver dropped nearly 3% to around $64.5 per ounce. The move came as U.S. 10-year Treasury yields climbed above 4.75%, Germany’s 10-year government bond yield rose to a 15-year high, and Japan’s 10-year bond yield moved above 3% for the first time since 1996. Market attention is now turning to U.S. labor data due this week, including the ADP employment report on Sept. 2 and the nonfarm payrolls report on Sept. 4, for clues on Federal Reserve rate expectations and the path of bond yields.
Gold and silver extended their recent losses on Sept. 1 as a sell-off in major global bond markets drove long-term yields sharply higher, curbing safe-haven demand for precious metals, according to Bitget market data cited by BlockBeats.
Spot gold fell nearly 1.8% during the day to around $4,370 per ounce, the lowest level since Aug. 19. Spot silver dropped nearly 3% to around $64.5 per ounce.
Higher global bond yields pressure precious metals
On the day, the yield on the U.S. 10-year Treasury moved above 4.75%. Germany’s 10-year government bond yield climbed to a 15-year high, while Japan’s 10-year government bond yield rose above 3% for the first time since 1996.
The market is concerned that escalating tensions in the Middle East could push up oil prices and inflation, which may force major central banks to keep policy tight or even raise rates further. That would continue to increase the opportunity cost of holding non-yielding assets such as gold.
Focus shifts to upcoming U.S. jobs data
Traders are now watching the Sept. 2 ADP employment report and the Sept. 4 U.S. nonfarm payrolls report for signals on Federal Reserve rate expectations and the next move in bond yields.
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