Tuesday, June 3rd 11:26 AM IST

Gold and US real yields appear to have decoupled for now

# Gold News  

Gold and US real yield s appear to have decoupled for now . Real treasury yields (i.e. adjusted for inflation) and the gold price are both falling. That is a break from the usual trend, where falling yields normally is good for the gold price.

NEW YORK (Bullion Street): Gold and US real yield s appear to have decoupled for now . Real treasury yields (i.e. adjusted for inflation) and the gold price are both falling. That is a break from the usual trend, where falling yields normally is good for the gold price.

The 3% drop in the gold price last week is likely to have been a function of re-pricing of the risk-premium attached to the Ukrainian crisis in a relatively illiquid and directionless market.

While Ukraine’s presidential elections on May 25th m ay be considered a step in the right direction, the situation is far from resolved . Unless we see a renewed strong upward rise in US bond yields, gold looks undervalued at these levels in our view, said ETF Securities.

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