Gold Wavers as Bond Yields Climb on Bets Over Fed Rate Hikes
- Yield on 10-year Treasuries hit highest since January 2020
- Longer-term prospects for gold positive: Saxo Bank’s Hansen
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Gold headed for a third decline in four sessions as U.S. bond yields surged amid increased speculation that the Federal Reserve will deliver more than a quarter-percentage point interest-rate hike in March.
Yields on 10-year Treasuries hit the highest since January 2020 as Fed officials say they may need to implement hikes faster than expected to curb the hottest inflation since the 1980s. Higher rates make bullion less competitive against assets that offer interest. A stronger dollar also dented demand for gold.