$XAU
How US Treasury yields knack the price of gold, mate
Here’s the main thing, see. Holding onto gold doesn't pay you a copper, does it? No interest, no dividends—naught. It just sits there, looking all shiny and pleased with itself
So, when safe-as-houses government bonds start paying out a proper decent yield, holding gold suddenly turns into a right pricey affair. That’s your "opportunity cost", init?—the cash you’re missing out on by not having your money in those bonds instead
$XAU
Because of that, when yields go up, gold looks a bit rubbish in comparison, so it tends to drop down. But when yields drop, gold’s got hardly any proper competition, so it usually pops right back up
Mind you, it’s not really about the headline yield—it’s all about the real yield. That’s the yield minus inflation, you see
If a bond pays you 6% but prices in the shops are going up by 5%, your actual reward is just a measly 1%. Gold reacts to that real figure, mate, not the flashy number sitting on the screen
$XAU
#GOLD_UPDATE #GoldenOpportunity
How US Treasury yields knack the price of gold, mate
Here’s the main thing, see. Holding onto gold doesn't pay you a copper, does it? No interest, no dividends—naught. It just sits there, looking all shiny and pleased with itself
So, when safe-as-houses government bonds start paying out a proper decent yield, holding gold suddenly turns into a right pricey affair. That’s your "opportunity cost", init?—the cash you’re missing out on by not having your money in those bonds instead
$XAU
Because of that, when yields go up, gold looks a bit rubbish in comparison, so it tends to drop down. But when yields drop, gold’s got hardly any proper competition, so it usually pops right back up
Mind you, it’s not really about the headline yield—it’s all about the real yield. That’s the yield minus inflation, you see
If a bond pays you 6% but prices in the shops are going up by 5%, your actual reward is just a measly 1%. Gold reacts to that real figure, mate, not the flashy number sitting on the screen
$XAU
#GOLD_UPDATE #GoldenOpportunity
