Gold bull case strengthens as US real yields are falling again

US 10-year yield has dropped by nine basis points this month.
Gold has gained over 3% this month, currently trades near $1,832.

Omkar Godbole FXStreet Contributor

The US real or inflation-adjusted yields are falling again and look to be powering gains in gold.

The 10-year real yield fell to -0.98% on Monday, having started the month at -0.89%, according to data provided by the US Department of The Treasury. The nine basis point decline in the US real yield seems to have put a bid under the yellow metal this month. At press time, gold is trading near $1,832 per ounce, representing more than 3% gains on a month-to-date basis. Prices bounced from $1,775 to $1,875 earlier this month.

A decline in inflation-adjusted yields often bodes well for the store of value assets such as gold. The yellow metal rose sharply from $1,450 to a record high of $2,075 in the five months to Aug. 7, as the real yield collapsed from -0.42% to a lifetime low of -1.08%.

Technical levels

XAU/USD

Overview
Today last price	1831.9
Today Daily Change	3.63
Today Daily Change %	0.20
Today daily open	1828.27

Trends
Daily SMA20	1835.65
Daily SMA50	1873.27
Daily SMA100	1909.12
Daily SMA200	1810.11

Levels
Previous Daily High	1841.65
Previous Daily Low	1819.08
Previous Weekly High	1875.34
Previous Weekly Low	1822.22
Previous Monthly High	1965.58
Previous Monthly Low	1764.6
Daily Fibonacci 38.2%	1827.7
Daily Fibonacci 61.8%	1833.03
Daily Pivot Point S1	1817.68
Daily Pivot Point S2	1807.1
Daily Pivot Point S3	1795.11
Daily Pivot Point R1	1840.25
Daily Pivot Point R2	1852.24
Daily Pivot Point R3	1862.82

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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