Central Banks Fuel Gold Surge as Yields Rise

Gold's recent surge has attracted over $500 billion in investments despite rising yields, raising questions about Bitcoin's lead.

A key driver of this divergence is strong demand from central banks, which is shifting gold's yield-sensitive dynamics and supporting the metal despite high yields.

According to TradingEconomics data, the 10-year U.S. Treasury Yield jumped almost 20% since late June, while gold advanced nearly 15% during the same period.

This trend suggests that structural demand may now outweigh gold's sensitivity to monetary expectations, with Chinese gold ETFs adding 11 tonnes in August and taking the total to 293 tonnes, the highest since April.