Gold price fall nearly 2% as oil surge and near-5% Treasury yields bolster Fed rate-hike expectations - Kitco AM Report - KITCO
Gold price fall nearly 2% as oil surge and near-5% Treasury yields bolster Fed rate-hike expectations - Kitco AM Report - KITCO
Source: KITCO
―
DW NOTE
The 10-year yield is at 4.95%, not near 5%. The Fed has held rates at 3.50-3.75% for nine months while headline CPI ran at 3.5% and core producer prices hit 3.65%. If they hike Wednesday — which the market now prices at 90% — it will be because they spent three quarters letting real rates turn negative while oil climbed 20% in a month. Gold isn't falling on rate-hike expectations; it's falling because those expectations are nine months late.