Gold Defies Expectations as Yields Breach 5% Threshold

The price of gold has shown remarkable resilience despite rising U.S. Treasury yields, which have breached the 5% mark for the first time in approximately three years.

This development is unusual, as historically, rising U.S. Treasury yields have tended to suppress gold prices.

However, Adam Turnquist, Chief Technical Strategist at LPL Financial, believes that the traditional correlation among gold, U.S. Treasury yields, and the U.S. dollar is breaking down.

The ongoing supply-side concerns in the crude oil market are supporting U.S. crude oil prices at elevated levels, with WTI crude rising above $102 during intraday trading on Tuesday.