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Gold Rises a Second Day as Declining Yields Boost Haven Appeal

  • 10-year note’s yield decline signals doubts on U.S. rate hikes
  • Crude’s slump into bear market seen weakening inflation
Updated on

Gold gained for a second day as crude oil’s slump into a bear market revived fears inflation will continue to undershoot the Federal Reserve’s target, putting at risk policy makers’ projections for monetary tightening.

While crude oil stabilized after Wednesday’s slump, it’s still down about 20 percent this year. The yield on 10-year U.S. Treasuries slipped to 2.1511 percent, near the lowest since November, signaling increasing doubt on the Fed’s ability to cut its balance sheet and aggressively push borrowing costs higher.