Gold gains while treasury yields rise and stocks decline on US fiscal concerns

Gold prices rose for a fourth day on Thursday as unease over President Donald Trump’s tax plan and growing fiscal deficit pushed long-term Treasury yields toward highs last seen almost twenty years ago. At the same time, stocks across Asia and on Wall Street declined.

Spot bullion edged up to about $3,336 an ounce, extending a rally that has added nearly 4 percent since Monday. Demand for havens grew as shares weakened and the dollar slid, sending investors toward the metal that set a record last month and is already more than a quarter higher this year.

Last week, gold logged its steepest five-day drop since November, yet the swift rebound shows how attention has shifted from daily tariff headlines to structural fears about the US economy. Funds switched from stocks to gold, the Japanese yen, and the Swiss franc, while Tokyo and Seoul benchmarks slipped.

The Bloomberg Dollar Spot Index eased 0.1 percent. Silver and palladium inched higher, while platinum slipped.

Treasury yields rise, while stocks decline

Longer-dated Treasury yields later touched an 18-month peak as signs of a worsening fiscal outlook gripped markets. Asian equity gauges and the greenback both traded lower, reflecting caution as Congress prepares to vote on the bill this week.

“Uncertainty about growth and the government’s ability to borrow more weighs on sentiment,” said Vis Nayar, chief investment officer at Eastspring Investments in Singapore. He added that parts of recent data still look firm despite trade friction stoked by White House tariffs.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.5% while Japan’s Nikkei slipped by 0.96%. Hong Kong’s Hang Seng index stands 0.27% lower today.

Earlier today, the Dow Jones Industrial Average fell by 816 points while the S&P 500 lost 1.61% (or 95.85 points). At the same time, the Nasdaq Composite lost 1,41%.

Away from bonds and bullion, bitcoin climbed for a fifth session, touching a record $111,691 before easing to stand 1.73 percent higher. The cryptocurrency has now erased losses from last month’s tariff-driven sell-off.

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