Gold and silver prices fall sharply as higher bond yields weigh on metals
Gold and silver prices have dropped sharply, with gold falling more than two percent and sinking to a seven-week low. The selloff in precious metals is driven by surging US Treasury yields, a stronger US dollar, and rising expectations for higher-for-longer Federal Reserve interest rates. Heightened inflation concerns, alongside an ongoing Hormuz impasse and higher oil prices, have reinforced market bets on US rate hikes. Consequently, investors have reduced their appetite for non-yielding precious metals, weighing heavily on commodities across global markets.
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- ✓ Gold dropped more than two percent to a seven-week low.
- ✓ Gold and silver prices fell sharply as rising bond yields and a stronger US dollar weighed on non-yielding metals.
- ✓ Real US bond yields hit near-record highs, driving the selloff in precious metals.
What changed
Precious metals extended their losses to a seven-week low as real US bond yields hit near-record highs and markets priced in aggressive Federal Reserve monetary tightening.
Live updates
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Gold and Silver Fall Sharply on Surge in US Bond Yields
Gold and silver prices have dropped sharply, with gold falling more than two percent and sinking to a seven-week low. The selloff in precious metals is driven by surging US Treasury yields, a stronger US dollar, and rising expectations for higher-for-longer Federal Reserve interest rates. Heightened inflation concerns, alongside an ongoing Hormuz impasse and higher oil prices, have reinforced market bets on US rate hikes. Consequently, investors have reduced their appetite for non-yielding precious metals, weighing heavily on commodities across global markets.
Why it matters
Rising US bond yields and a stronger dollar reduce the relative attractiveness of non-yielding assets like gold and silver. Persistent geopolitical tensions, including the Hormuz stalemate, alongside climbing oil prices, have continued to fuel inflation worries. These macroeconomic factors combine to push central bank rate expectations higher, heavily impacting precious metal valuations.
What is confirmed
- Gold dropped more than two percent to a seven-week low.
- Gold and silver prices fell sharply as rising bond yields and a stronger US dollar weighed on non-yielding metals.
- Real US bond yields hit near-record highs, driving the selloff in precious metals.
Still unconfirmed
- An Iran rejection and Hormuz impasse are directly keeping rate-hike bets elevated.
What to watch next
- Upcoming US economic data releases
- Further shifts in US Treasury yields and the US dollar
- Developments regarding the Hormuz stalemate and oil prices
confidence 95%Sources used for this update (27)
- Reuters — Gold drops more than 2% on US rate-hike bets
- Bloomberg.com — Gold Slumps as Hormuz Impasse Keeps Rate-Hike Bets Elevated
- CNBC — Gold and silver prices fall sharply as higher bond yields weigh on metals
- wsj.com — Gold Falls to Seven-Week Low as Rate-Hike Bets Rise
- Reuters — Gold's lustre dims as Treasury yields surge, markets bet on higher Fed rates
- BullionVault — Gold and Silver Sink as Real US Bond Yields Hit Near-Record Highs
- KITCO — Gold breaks key Fibonacci support as Iran rejection fuels rate hike bets
- Yahoo Finance — Gold prices today, Monday, September 28, 2026: Gold prices slump as Iran tensions and oil prices rise
- Al Jazeera — Gold falls amid rising oil prices and higher US dollar
- WSJ — Gold Edges Higher; Prices Remain Under Pressure
- Reuters — Gold lingers near 7-week low ahead of US economic data
- KITCO — Metals sell off as Hormuz stalemate drives yields, dollar higher - Kitco AM Report
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