Gold is losing ground as traders focus on the major rally in the oil markets. Oil prices are up by 7.5% as Houthis attacked Saudi Arabia’s tankers. Brent oil climbed above the psychologically important $100 level as traders prepared for major supply disruptions. The Strait of Hormuz is de-facto closed, and the Bab al-Mandab Strait may be shut by the Houthis. Treasury yields gained ground as bond traders bet that Fed will be forced to raise rates to fight inflation triggered by high oil prices. The yield of 2-year Treasuries settled above the 4.35% level, while the yield of 10-year Treasuries moved towards 4.70%. ... (full story)