Spot gold firmed 0.3% at $2,321.70 per ounce by 9:47 a.m. ET (1347 GMT) after rising as much as 0.8% earlier in the session. Prices were down over $100 from an all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil
Just as 10-year Treasury bonds reached their lowest point since 2007, Bill Ackman announced that his firm covered their short on bonds.
US Treasury yields have come off a bit but there is a high probability that they will continue to rise. This would be transmitted to other markets and the cost of capital for other borrowers would go up
While the Fed reassured markets that it won’t raise the federal funds rate, the biggest issue is the markets still have doubts about inflation given strong growth and the big stimulus package
Benoit Anne, MD and Head-Emerging Market Strategy, Societe General expects 10 year US Treasury bond yield to rise to 3.25 percent by year end.