The yield on long-term US bonds has risen to the highest level of the year, which is also the highest level since the end of 2007:Clearly, investors believe that the expected Fed monetary policy stance is not sufficiently restrictive and that inflation will remain elevated for a longer period, along with high interest rates. As a result, investments in a series of short-term bonds with sequential investment rollovers appear to be a more favorable strategy than purchasing long-term bonds. Therefore, the rise in long-term bond yields is currently outpacing the increase in short-term yields, shedding light on the primary current driver of financial markets: the reemerging risk of more persistent global inflation.Interestingly, the yield is increasing even in the face of a positive inflation report for July, which indicated a faster than expected deceleration of inflation and despite the absence of convincing signals from the macroeconomic front, that the high inflation is expected to remain a longer-term challenge for the markets.Yesterday, the minutes of the July Federal Reserve meeting were released, showing that the majority of officials see significant risks of either an acceleration in inflation or a longer-lasting elevated level. Additionally, it was suggested that further rate hikes might be necessary. This new information regarding the Fed’s policy has increased the chances of another rate hike by the end of this year to 33%, up from 24.7% the previous week:Gold prices, which are slightly responsive to the expected real interest rate in the US (which is rapidly rising in line with the nominal rate), fell below $1900 per troy ounce for the first time since the end of June, breaking the previous low from which, the price rebounded. According to technical analysis, the next target for sellers could be around $1860 per troy ounce:In turn, the US dollar reached its short-term growth target (103.50 on the DXY index) and is now at a critical juncture regarding the overall bearish trend, depending on whether the price can break through the upper boundary of the descending corridor:Investors are awaiting Powell’s speech at the Jackson Hole Symposium, which will be a major event in the near term and is expected to have a significant impact on the market.