Invesco: Gold has priced in the "tightening trend" but not the "real yield"

Golden Ten Data reported on June 26 that after the release of US inflation data on Thursday, bond traders slightly lowered their expectations for a Federal Reserve rate hike this year, and the probability of an increase next month also fell to about one-third. However, the trend of tightening monetary policy still poses an obstacle for gold, making its investment appeal less than that of yield-bearing assets such as US Treasury bonds. “Gold has almost priced in the risk of further Federal Reserve tightening, but has not yet priced in the pattern of persistently ‘higher for longer’ real yields,” said Invesco market strategist David Chao.