The bond market is getting clobbered. Long-term interest rates are rising and that is putting significant pressure on gold. Peter Schiff talked about rising rates and the gold market in a recent podcast. He said the rise in long-term yields is a function of inflation and people seem to forget that inflation is good for gold.
On Tuesday, the yield on the 10-year Treasury was just under 1.3%. It was just last month that the yield hit 1% for the first time since COVID. In other words, the 10-year yield is up 30% in just one month. That is a huge move in the world of bonds. Meanwhile, the yield on the 30-year Treasury hit 2.09%. It just eclipsed 2% on Friday.
But even with this big rise in interest rates, the only markets that seem to be feeling the effects are gold and silver. On Tuesday, gold sold off and fell back below $1,800 an ounce.