Gold and Bitcoin Retreat as US Yields Surge and Rate Hike Odds Rise

Key Facts

1Gold price broke below its three-month uptrend as U.S. bond yields tested levels not seen since 2004 and 2007.

2Bitcoin pulled back from a nine-month high as the Dollar Index held near yearly highs above 101.

3Market expectations for a Federal Reserve rate hike remain above 70%.

Gold prices broke below a three-month uptrend as U.S. bond yields tested multi-decade highs. Forex.com reported that Bitcoin also pulled back from its nine-month peak under pressure from a strong Dollar, with the Dollar Index holding near yearly highs above 101.

The retreat follows market expectations for a Federal Reserve rate hike remaining above 70%. Surging U.S. Treasury yields, reaching levels not seen since 2004 and 2007, continue to drive capital toward the Dollar while weighing on non-yielding assets and the broader crypto market.