Record Gold Prices: Real Yields Aren't Really Responsible (Bloomberg)

The Golden Constant

Gold is still glittering. The shiny metal has reversed slightly in recent days, but its upward trend remains uninterrupted. It tends to move directly in line with real yields (those on inflation-linked bonds, or the result of subtracting the breakeven inflation forecast from the nominal yield). While gold is only just below the all-time high of more than $2,000 per ounce set earlier this month, real 10-year Treasury yields are only a little above the all-time trough of minus 1% also reached earlier this month: