The value of gold and Bitcoin reversed direction late Tuesday, as increases in Treasury issuances have driven yields higher. Gold prices saw the largest single-day drop in seven years, after hitting new all-time highs above $2,000.
The price of gold had increased substantially, as negative real rates on Treasuries sent investors into safe havens assets. However, strong economic data was recently released, and the Treasury announced new issuances in other bond categories.
Both events pushed yields into positive territory and sent prices of precious metals plummeting. Michael Widmer, from Bank of America Merrill Lynch, stated:
Today real rates clearly moved higher and that’s clearly what moved gold lower. You had stronger PPI data out and I think when that data came out the market had another look at rates and expectations.The extreme volatility seen recently in the precious metal market is not customary. Generally considered a safe-haven asset, gold rarely sees daily changes larger than 2-3%.

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Jon Buck
With a background in science and writing, Jon's cryptophile days started in 2011 when he first heard about Bitcoin. Since then he's been learning, investing, and writing about...
With a background in science and writing, Jon's cryptophile days started in 2011 when he first heard about Bitcoin. Since then he's been learning, investing, and writing about...
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