- October 2, 2026
- Posted by: Tresmark
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Gold has held above the $4,000-an-ounce level despite a sharp rise in US Treasury yields, indicating that strong demand for the precious metal is offsetting the pressure typically created by higher interest rates.
Gold usually moves inversely to real yields because it does not generate interest income. However, the metal’s price behaviour since 2022 suggests that demand from central banks and investors seeking reserve diversification has become a stronger supporting factor.
Strong central bank purchases are providing a firm floor for gold prices around $4,000 an ounce, while continued buying by China points to resilient physical demand.
China’s gold imports have remained robust, adding to evidence that underlying demand is supporting prices even as higher US yields and a stronger dollar create headwinds.
Gold-backed exchange-traded funds could also see renewed inflows once the Federal Reserve’s tightening cycle comes to an end. A shift toward easier monetary policy could reduce the opportunity cost of holding the non-yielding asset.
The combination of central bank accumulation, strong Asian demand and potential ETF inflows is keeping gold supported and could leave the metal positioned for further gains once pressure from US monetary tightening eases.
