Gold Struggles as High Yields Weigh on Price

Gold has been lagging behind the S&P 500 as real yields remain high. The gold price currently stands at around $4,330, while the US stock market continues to hold near record highs. AI stocks have contributed significantly to this rebound in the US market, but gold has struggled to keep pace.

High real yields, which were a result of the Fed's rate hike in September, are adding pressure on the gold price. To gauge whether the balance is shifting between gold and the S&P 500, we can look at the gold-to-S&P 500 ratio and the Dow-to-gold ratio.

I think that gold must hold $4,000 to avoid a deeper correction, although this view is not explicitly stated in the source. The article presents market developments, US stock market ratio analysis, and price levels that could influence the next move in gold.