Gold, Silver Tumble With Higher Yields Dimming Metals’ Appeal

Yellow metal wipes out weekly gain as losses in dollar ebb
Treasury yields hit highs amid relief hopes, jobs data

A selection of gold bars of various weights sit at Gold Investments Ltd. bullion dealers in this arranged photograph in London, U.K., on Wednesday, July 29, 2020. Gold held its ground after a record-setting rally as investors awaited the outcome of a Federal Reserve meeting amid expectations policy makers will remain dovish, potentially spurring more gains.Photographer: Chris Ratcliffe/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Justina Vasquez and Eddie Spence

January 8, 2021 at 1:38 AM UTC

Updated on

January 8, 2021 at 10:08 PM UTC

This article is for subscribers only.

Gold wiped out gains for the week and silver tumbled the most since September as U.S. Treasury yields extended a rally and the dollar recovered.

Silver lost as much as 9.8%, while gold fell as much as 4.5%, the most since November. The dollar erased losses amid higher 10-year Treasury yields, which are raising the prospect of a pause in the currency’s recent slide. Higher rates diminish the appeal of bullion, which doesn’t offer interest.