Gold Holds Support Above $4,350 as 10-Year Treasury Yields Stay Over 4.5%

8 articles · Updated · Kitco NEWS · May 22

$4,350 has emerged as a key near-term floor for gold as bullion and silver hold support despite a bond selloff that kept 10-year Treasury yields above 4.5% and 30-year yields above 5%.
42% odds of a 25-basis-point Fed hike by year-end—plus a 22% chance of 50 basis points of hikes—are raising the opportunity cost of holding non-yielding metals and capping upside.
Analysts are split on what higher yields mean next: some see a possible bond-market crisis that could revive wealth-preservation demand for gold, while TD Securities says rates are mainly rising on inflation expectations and firmer growth.
Gold could still face a short-term drop toward $4,000, though some analysts see longer-run upside as high inflation, weaker dollar momentum and continued central-bank reserve shifts into precious metals support the market.
Next week’s light holiday trading shifts focus to U.S. consumer confidence, revised Q1 GDP and especially PCE inflation after Michigan sentiment fell to a record-low 44.8 and one-year inflation expectations rose to 4.8%.

As central banks stockpile gold, is the world quietly preparing for an end to the US dollar's dominance?

With global debt at $350 trillion, can the Fed combat inflation without triggering a systemic bond market crisis?