Gold usually weakens during interest rate hikes, but Ole Hansen, head of commodity strategy at Saxo Bank, said this traditional relationship may be undergoing a transformation. Hansen pointed out that although the 10-year yield on US bonds recently broke through 5% and reached the highest level in 20 years, gold ETF holdings are still rising, climbing to the highest level in seven months. This shows that market concerns about US finance are changing the relationship between bond yields and gold prices, and there is a growing disconnect between the two. He added that historically, yield has always been regarded as a key indicator for judging the trend of gold, because gold and other hard assets such as silver and platinum do not pay interest or dividends, so higher yields will make bonds more attractive than holding gold. Traditionally, when real yields rise, gold prices face downward pressure.

Gold usually weakens during interest rate hikes, but Ole Hansen, head of commodity strategy at Saxo Bank, said this traditional relationship may be undergoing a transformation. Hansen pointed out that although the 10-year yield on US bonds recently broke through 5% and reached the highest level in 20 years, gold ETF holdings are still rising, climbing to the highest level in seven months. This shows that market concerns about US finance are changing the relationship between bond yields and gold prices, and there is a growing disconnect between the two. He added that historically, yield has always been regarded as a key indicator for judging the trend of gold, because gold and other hard assets such as silver and platinum do not pay interest or dividends, so higher yields will make bonds more attractive than holding gold. Traditionally, when real yields rise, gold prices face downward pressure.