Gold prices remained supported by a bullish technical structure on Thursday, despite upward pressure from rising real yields that typically weigh on non-yielding assets.
Analysts attributed the resilience to strong support levels around $2,300 per ounce, which have repeatedly capped downside moves in recent sessions. The metal's price action has continued to reflect a constructive outlook, with futures contracts maintaining a premium to spot prices, a pattern often associated with bullish sentiment in commodities markets.
Real yields, as measured by the U.S. 10-year Treasury Inflation-Protected Securities (TIPS), have climbed this week, reducing the attractiveness of gold as an inflation hedge. The yield on 10-year TIPS reached its highest level since early March, pressuring gold futures which were last trading near $2,330 per ounce.
Market participants noted that while real yields pose a headwind, the metal's ability to hold above key moving averages has reinforced its near-term bullish bias. Technical indicators such as the Relative Strength Index (RSI) remain in neutral territory, suggesting further consolidation could precede another leg higher.
The divergence between rising real yields and gold's price stability underscores the metal's dual role as both a hedge against inflation and a safe-haven asset during periods of elevated uncertainty. Traders will closely monitor U.S. economic data releases, particularly inflation reports, for further direction on real yields and their impact on gold pricing.
