The big macroeconomic catalyst shaking up the fixed-income world is a sharp selloff in government debt that pushed the 30-year U.S. Treasury yield to 5.44%, marking its highest level since 2004.

When long-term treasury yields climb to these heights, it creates a formidable obstacle for non-yielding assets like gold. Institutional capital is pulled toward high, risk-free returns backed by the government, increasing the opportunity cost of holding physical bullion. Even so, underlying safe-haven demand keeps a firm floor under the precious metal as global uncertainty persists.

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