Screen Shot 2018 05 15 at 11.26.20 AMMarkets Insider

  • Gold prices were down nearly 1.5% Tuesday morning.
  • Selling of the yellow metal followed stronger-than-expected economic data.
  • Tuesday's slide pushed gold below $1,300 for the first time this year.  
  • Follow gold prices in real-time here.

Gold prices plummeted below $1,300 for the first time this year on Tuesday after the US 10-year yield spiked to its highest level in seven years on the back of a spate of strong economic data.

The yellow metal was down 1.44% to $1,293.62 an ounce at 10:45 a.m. ET. Gold prices tend to move opposite of interest rates, which look poised to rise after an uptick in consumer spending and strong business conditions. 

The Commerce Department said retail sales rose 0.30% in April, in-line with economist expectations and marking a second straight month of growth in spending at stores. March numbers were particularly strong, revised from 0.60% to 0.80% growth.

On top of that, the Empire State Manufacturing Survey showed stronger-than-expected business conditions, with growth at 20.1 in May, compared to 15.8 last month.

The 10-year Treasury yield spiked as high as 3.07%, a peak going back to 2011, after the data was released. The two-year yield rose as high as 2.58%, a level not seen since 2008.

Gold is up 6.67% over the year. 

NOW WATCH: What will probably happen with the North and South Korean peace treaty

See Also:

SEE ALSO: The 10-year hits its highest level in 7 years

Related Posts