Gold Posts Biggest Drop in Seven Years on Rising U.S. Yields
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The rally that pushed gold to record heights above $2,000 an ounce has come to an abrupt halt, with the haven metal posting the biggest drop in seven years after bond yields spiked higher.
Treasury bond yields climbed, cutting into the negative real rates that had supported the metal. The 10-year Treasury yield jumped the most since June ahead of an expected flood of government and corporate debt issuance. U.S. producer prices increased faster than expected.