Latest / The Commodities Economy with Fexingo: Oil, Gold, Wheat, and Raw Material Markets
How Gold Breaks Down When Real Yields Rise
Gold has dropped nearly two percent in the last five days, settling around $4,057 an ounce, while the ten-year breakeven inflation rate ticked up to 2.26 percent. Lucas and Luna unpack the specific mechanism driving gold lower right now: rising real yields. They walk through how the Federal Reserve's latest signaling — and this morning's CPI print showing June inflation easing to 332.6 — reshapes the calculus for the metal that's supposed to be the ultimate hedge. They also touch on the geopolitical irony: even a U.S. strike on Iran over the Strait of Hormuz barely budged gold…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.