U.S. Real Interest Rates Soar Amid Robust Economy

Gold prices have been under pressure in recent sessions, despite its underlying strength. The main drivers of gold prices remain the U.S. Dollar Index and real interest rates. Analysts believe that analyzing endogenous variables affecting real interest rates is crucial for investors.

The recent surge in PMI data and breakthroughs in the AI sector have reignited the narrative of a robust U.S. economic strength, pushing up real interest rates. Several Federal Reserve voting members have signaled hawkish stances, contributing to this trend.

U.S. Treasury Secretary Janet Yellen has expanded the scale of Treasury buybacks to support the bond market, but this resulted in a scenario where positive news failed to lift prices. The continued implementation of AI applications is driving a sustained increase in endogenous capital returns in the real economy.