- US 10-year yield has dropped by nine basis points this month.
- Gold has gained over 3% this month, currently trades near $1,832.
The US real or inflation-adjusted yields are falling again and look to be powering gains in gold.
The 10-year real yield fell to -0.98% on Monday, having started the month at -0.89%, according to data provided by the US Department of The Treasury. The nine basis point decline in the US real yield seems to have put a bid under the yellow metal this month. At press time, gold is trading near $1,832 per ounce, representing more than 3% gains on a month-to-date basis. Prices bounced from $1,775 to $1,875 earlier this month.
A decline in inflation-adjusted yields often bodes well for the store of value assets such as gold. The yellow metal rose sharply from $1,450 to a record high of $2,075 in the five months to Aug. 7, as the real yield collapsed from -0.42% to a lifetime low of -1.08%.
Technical levels
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