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Gold Drops 3.4% in Rare One-Day Move as Treasury Yields Surge
The decline produced a -2.90 Z score, placing it in an extreme part of gold’s return distribution since 2006.
Gold prices fell 3.4% in an unusually large one-day decline as a sharp rise in U.S. Treasury yields delivered an unusual shock to precious-metals markets.
Since 2006, gold’s average daily move has been 0.05%, while its standard deviation is 1.19%. The decline produced a Z score of -2.90, placing the move in the extreme left tail of the return distribution.
Using a normal-distribution estimate, a one-day drop of this size has an approximately 0.2% probability, equivalent to about once every two years on average.
