Gold futures slide as hawkish Jackson Hole remarks lift yields
December gold futures dropped sharply to close the week after hawkish comments at Jackson Hole pushed short-term Treasury yields higher. Investors weighed higher-for-longer rates and the opportunity cost of holding non-yielding assets.
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December Gold futures faced a sharp decline to close out the week as hawkish comments from the Jackson Hole economic symposium drove short-term Treasury yields higher.
With the market digesting the prospect of higher-for-longer interest rates, the opportunity cost of holding non-yielding assets weighed heavily on the metals complex.
Despite the near-term headwinds, long-term support for gold remains intact as federal debt surpasses $40 trillion and the Treasury prepares to double its bond buyback program in September.