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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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11:00:07 PM UTC
SquawkNews
Todd Colvin breaks down a volatile week for interest rates following hawkish remarks from Jackson Hole. The 10-Yr yield rallied five basis points to close near 4.72% as markets reprice expectations for future rate hikes. Looking ahead, focus shifts to ISM data and Friday's nonfarm payrolls report.

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.