Gold Ignored an 18-Year Yield High. Here's Why. - GoldSilver

AI desk brief

US 10-year yields surged to 5.02%, the highest since 2007, but gold held near $4,278/oz and silver was nearly flat around $63.26, highlighting resistance in metals despite a sharp rise in opportunity cost. The move comes ahead of Wednesday’s Fed decision, with fed-funds futures pricing a hike at roughly 90-92% odds, so the key catalyst is likely Chair Warsh’s guidance and the new dots rather than the hike itself.

The article argues that oil strength above $100/bbl is feeding inflation expectations and keeping nominal yields elevated, while Middle East supply disruptions add a geopolitical layer. Despite that, gold’s ability to reclaim and hold around the $4,278 area suggests much of the near-term policy risk is already priced in.