US Treasury yields rose across the board, with the 10-year Treasury yield, which is negatively correlated to gold prices, rising by about 6 basis points to 4.541%, becoming a major negative factor in suppressing gold prices.
Cleveland Fed official Beth Hammark delivered a hawkish statement: “Maintaining current interest rates makes sense, but if the current economic trend continues, the Fed may soon need to intervene to curb high inflation.”
Money market prices are indicating a 67% chance of a rate hike at the Fed’s December meeting, with the market widely expecting the Fed to keep interest rates steady in June.
