Jordan Roy-Byrne: Gold Price Has Held Up Well Against Real Yields

The Daily Gold, Released on 8/9/22

The Gold Price has held up reasonably well against the recent rise in real yields. The real 10-year TIPS yield has increased by roughly 2% and Gold declined no more than 20% off its high. In 2012-2014 the real TIPS yield did not increase as much but Gold declined significantly. The real 10-year yield increased only a bit more in 2008 yet Gold declined by quite a bit more. For Gold to break below $1675, the real 10-year yield would need to increase materially from here. If the nominal 10-year yield trends lower, then its difficult to see real yields increasing from here materially, and that could help Gold avoid breaking below $1675.

Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.

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