The gold price opened $4 higher (+0.3%) to $1,344/oz on Tuesday.
This was partly due to the dollar returning to its downward path. The DXY index was down 0.3% to 89.0 this morning.
Silver prices added 7¢ (+0.4%) to trade at about $17.20/oz.
Platinum was mostly flat at $1,000/oz while palladium lost another $16 to fall to $1,065/oz.
The primary market driver on Tuesday was rising bond yields—i.e. less demand for government bonds.
It means financing for corporations would become more costly. An anticipation of higher borrowing costs is beginning to push equities lower.
Such a trend could prove to be a tipping point for equities if yields rise rapidly.
This is especially true in the event that the 10-year Treasury yield breaks 3%. The benchmark T-note yield stands at 2.71%, the highest in nearly four years.
Bonds around the world followed the same trend. Germany's five-year Bund is now offering a positive yield for the first time in over two years.
Despite the latest reading of eurozone GDP beating expectations, stocks around the region were sharply lower. The EU has experienced 19 consecutive months of economic growth.
Several Asian markets also had their worst trading day of the new year. Indices in Australia, Shanghai, Hong Kong, and Tokyo each lost roughly 1%.
Similarly, Wall St saw its biggest single-day loss (in terms of percentage) in five months yesterday.
Shares of Apple (AAPL), the world's most valuable company, tumbled on tepid demand for the new iPhone X. This dragged U.S. markets lower.
The euro, yen, and pound all advanced about 0.45% against the dollar.
There could also be a shake-up in the healthcare sector after three corporate giants—JPMorgan, Berkshire Hathaway, and Amazon—announced they are exploring a joint venture in the health services space.
News of the possible collaboration between the three companies sent shares in the sector lower on Tuesday.
The FOMC meeting kicks off today. Wednesday's policy announcement is expected to be fairly hawkish.
It's also the last Fed gathering before Jerome Powell takes the reins as Federal Reserve Board Chair from Janet Yellen. Powell's nomination to the post was recently confirmed by the Senate.
A major revelation swept across the financial news media yesterday: the CFTC charged half a dozen traders and three big banks (UBS, HSBC, and Deutsche Bank) with spoofing. Multi-million-dollar fines were assessed.
Spoofing is an illegal technique that attempts to manipulate market prices. At least three of the cases the CFTC cited involved manipulation of precious metals prices.
Meanwhile, commodities aside from gold and silver saw downward pressure on Tuesday. Nickel futures lost more than 2% before paring losses.
Crude oil continued to slip from its recent three-year highs. Brent crude traded at $69/bbl and WTI crude fell below $65/bbl. The spread between the two oil price benchmarks is at a five-month low.
The cryptocurrency market likewise experienced widespread losses during Tuesday's session.
In international economic news, an analysis by the British government showed that Brexit could potentially have a strong negative impact on the country's economy.
The divorce from Europe may sap growth in the U.K. by 8% over the next decade and a half. The report concluded that the impact would be broad-based, affecting all sectors of the economy.
Fears about the outcome of Brexit may even pressure the prime minister, Theresa May, to ultimately resign from her post.
In the U.S., President Trump has hinted that immigration and trade will be the major themes of his State of the Union address tonight.
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