Precious metals plunge as US yields rocket higher again

Gold fell below 1,700 USD again, while silver headed toward 24 USD as US yields pushed to new swing highs. It looks like the bull markets in metals are officially over.

US bonds are under pressure again, which resulted in the highest yields since Spring 2020 for many maturities. The greenback loves this environment, and the EURUSD pair is dropping toward 1.17, while the USDJPY pair advanced above the psychological 110 threshold for the first time since March 2020.

Tech companies are selling-off again as they are the most sensitive to rising yields. The Nasdaq 100 index is down 1% today, trading at around 12,900 USD, while the SPX and Dow Jones indices are flattish.

On the other hand, EU indices continued in their rally, and the DAX 30 index pushed to new record highs. 

From other news, the French Finance Minister Bruno Le Maire said: “all options are on the table” to protect the public from rising numbers of infections in a third wave of the Covid-19 virus. It looks like another lockdown will be announced, or better to say; the first never-ending lockdown will stay in place. 

Source: https://www.axiory.com/market-news/precious-metals-plunge-as-us-yields-rocket-higher-again