Gold Pulls Back as Treasury Yields Stay Elevated

That backdrop matters because gold had been priced for perfection. The front-month Comex contract, GC=F, hit 4,609.7 on Aug. 27 before sliding to 4,529.9 on Aug. 28, while GLD fell to 408.89 from 422.6 a day earlier. Both remain far above their 200-day moving averages — 4,513.66 for GC=F and 414.79 for GLD — but the latest drop came with stronger turnover, a sign that traders are actively de-risking rather than waiting for a shallow dip.

The move also arrives after a volatile stretch that saw bullion power to new highs and then reverse quickly. GLD’s RSI has eased to 54.2 from overbought levels above 70 earlier in the week, and the contract’s momentum has cooled even as the broader uptrend remains intact. PHYS, another gold-backed fund, also slipped to 33.8 from 35.0, underscoring that the pullback is broad-based rather than limited to one vehicle.

For investors, the key question is whether rising yields and a firmer real-rate backdrop can keep cap gold prices lower in the near term. If the 10-year stays near 4.6% and the dollar steadies, bullion could struggle to reclaim recent peaks. But if inflation data or growth worries revive rate-cut bets, gold’s safe-haven bid could return quickly.