Breaking traditions: Why gold prices defy 10-year Treasury yield movements

08/29/2023 08:00
Breaking traditions: Why gold prices defy 10-year Treasury yield movements

The divergence between the 10-year Treasury yields and gold is increasing, breaking the trend of this historically inverse relationship.

Breaking traditions: Why gold prices defy 10-year Treasury yield movements Breaking traditions: Why gold prices defy 10-year Treasury yield movements 2 mins ago · 2 min read

The historical divergence between gold and 10-year Treasury yields challenges market norms.

2 min read

Updated: August 29, 2023 at 1:33 am

Breaking traditions: Why gold prices defy 10-year Treasury yield movements

Cover art/illustration via CryptoSlate

In an unprecedented twist, the correlation between the 10-year Treasury yield and gold, two key financial indicators, is diminishing. Historically, these two have moved inversely - a rising yield often signals economic optimism, making gold less attractive, and vice versa. But recent data tells a different story... Despite soaring Treasury yields indicating economic confidence, gold prices are not dipping as expected. Instead, they are reaching record highs. What global factors are driving this unexpected resilience in gold? And more importantly, how can investors navigate this new paradigm...?

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