Rising real yields have crushed the momentum of precious metals, with gold and silver prices plummeting in recent days. This decline is largely attributed to the surge in interest rates by major central banks, including the Federal Reserve, which has led to an increase in borrowing costs and a decrease in investor demand for safe-haven assets.
 
 According to Kitco News data, the 10-year Treasury yield has risen by over 1 percentage point since the start of the year, with the 30-year yield also experiencing significant gains. This increase in real yields has made precious metals less attractive to investors, who are now opting for higher-yielding assets.
 
 The impact on gold and silver prices has been particularly pronounced. Gold, which had been trading near a two-year high in January, has fallen by over 5% in the past week alone, while silver has dropped by around 7%. The decline in precious metals prices is also being attributed to the strengthening of the US dollar, which has made imports cheaper and boosted consumer spending.
 
 However, some analysts argue that the rise in real yields may not be a direct result of monetary policy tightening. They suggest that factors such as inflation expectations and global economic growth may also be playing a role in the decline of precious metals prices.
 
 The situation highlights the complex interplay between interest rates, inflation, and precious metal prices. As interest rates continue to rise, it will be important for investors to carefully consider their asset allocation and adjust accordingly.
 
 Rising real yields have crushed the momentum of precious metals, but this trend may not last forever. Investors should stay tuned for further developments in the market and be prepared for any potential shifts in investor sentiment.
 
 

 

 
 
 Despite the decline in precious metals prices, some analysts remain bullish on gold and silver due to fundamental reasons such as reduced mine supply and rising demand from emerging markets.
 
 

 In conclusion, the rise in real yields has had a significant impact on precious metal prices, but it is essential for investors to consider other factors that may influence these prices. As interest rates continue to evolve, investors should remain vigilant and be prepared for any potential changes in market sentiment.