Gold Holds Above $4,000 Even as US Treasury Yields Top 5% — Institutions Say Gold's Pricing Logic Is "Re-Anchoring" - finance.biggo.com

AI desk brief

Gold is holding above $4,000/oz even as U.S. Treasury yields move above 5%, with speakers at the LBMA conference arguing the long-standing inverse gold/yield relationship is weakening as debt, inflation and fiat-currency debasement concerns drive strategic demand. Fund managers said the “debasement trade” reflects rising term premia and fiscal stress rather than a simple growth/repricing story, while Asian buyers continue to “buy the dips” and support gold during local trading hours.

Bundesbank President Joachim Nagel added an official-sector bullish signal, saying the case for reserve diversification into gold remains strong amid geopolitical risk and sanction concerns. He said gold’s share of global central bank reserves has risen from about 14% in 2023 to nearly 25%, and noted the Bundesbank holds more than 3,500 tonnes; speakers also warned that jewelry demand has already weakened and that near-term volatility remains possible even as structural support improves.