Gold Flooded with $500B Despite Rising Yields: Will Crypto Be Next?
The gold market has seen a significant influx of capital in recent times, with over $500 billion reportedly entering the sector. This trend is particularly notable given the rise in yields, which would typically lead to increased demand for risk assets such as Bitcoin.
However, analysts suggest that this divergence may be short-lived. According to TradingEconomics data, the 10-year U.S. Treasury Yield has jumped nearly 20% since late June, while gold has advanced almost 15% during the same period.
The main driver of this divergence appears to be a strong demand for gold from central banks, which is shifting the precious metal's yield-sensitive dynamics and providing support despite high yields. This structural demand may now outweigh gold's sensitivity to monetary expectations.