#Metals Stocks: Gold edges lower as Treasury yields bounce

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.259%,
which dipped to a five-month low on Monday, continued to rebound, rising 3.5 basis points to 1.241%. Higher bond yields raise the opportunity cost of holding assets that don’t offer yields.

That said, ‘the previous much more pronounced decline in yields had hardly affected the gold price at all,” noted analysts at Commerzbank, in a note.

“For now at least, the fact that yields are still at absurdly low levels, especially by comparison with current inflation and inflation expectations, and that real yields based on inflation expectations are still well below -1%, appears not to be playing any role,” they said.