Breaking traditions: Why gold prices defy 10-year Treasury yield movements

Historically, the 10-year Treasury yield has been a reliable barometer of broader economic sentiment. However, recent data suggests a weakening correlation between this yield and another key asset: gold. This divergence, not seen in decades, has profound implications for investors and the broader market.

The 10-year Treasury yield represents the return on investment for U.S. government bonds with a 10-year maturity. It’s a crucial metric for several reasons.