Wall Street Live

Gold Defies Logic, Soars Amid Real Yield Surge

By Barry Stearns

4/3, 20:02 EDT
  • Gold's unprecedented climb to record highs is defying logic by not succumbing to elevated real yields, a trend that historically would have caused a reversal. This suggests that unless there is a significant economic or financial crisis, the metal's rally is likely to be short-lived.
  • Despite the 10-year real yield hovering around 2%, a level not seen since 2009, gold continues to soar, indicating potential vulnerability in its current rally. Previous instances of record highs for gold coincided with negative real yields during times of crisis, hinting at investor concerns for impending turmoil.
  • The surge in gold prices may be driven more by negative sentiment rather than negative real yields, as seen in previous historical instances where the metal reached record highs during times of economic uncertainty.