Calm Equity Markets Back Gold Prices Despite Surging Yields, Says MarketVector’s Yang

Gold prices face pressure from climbing bond yields amid inflation worries and expectations of a more aggressive Federal Reserve stance. Yet low equity market volatility, with the VIX around 15-17.5, provides support, according to Joy Yang of MarketVector Indexes. Gold holds above $4,150 an ounce while 10-year yields reach a 20-year high of 5.26%.

Yang points out that investors treat gold as a structural hedge against persistent inflation and oil shocks rather than merely a bond alternative. Robust inflows into gold and Bitcoin ETFs underscore demand for alternatives despite rising holding costs for non-yielding assets.

Although near-term ETF selling risks persist, Yang does not foresee gold returning to prior-year lows. Ongoing uncertainties over debt, geopolitics and supplies create a new higher trading band where the metal acts as portfolio protection.