The short version: when US real yields rise, holding gold — which pays no interest — becomes relatively less attractive, and gold often weakens. When real yields fall, the opposite tends to happen.
What are real yields?
A real yield is the interest rate on a bond after subtracting expected inflation. Traders often track the 10-year US TIPS yield as a proxy.
Why gold cares
Gold competes with interest-bearing assets for investors' money. The relationship is strong on average but not constant — geopolitical risk and central-bank buying can override it.
Planning around data
- Check the calendar for CPI, PCE and FOMC.
- Reduce size or wait if spreads widen.
- Log what you did in your journal and review it.
Educational content, not investment advice. Tradno is not a broker and does not provide personalised recommendations. Trading on margin carries a high risk of loss.