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Gold
Gold
(AP)

Gold plunges, and bond yields are to blame

Recent price action in gold and U.S. bond markets confirms that in the present environment, higher U.S. bond yields are the mortal enemy of bullion investors.

Stronger-than-expected U.S. economic data has sent 10-year U.S. Treasury yields higher in recent days. At the same time, the gold spot price has fallen sharply.