Real yields

Real yields are bond yields minus expected inflation, representing the inflation-adjusted return on holding interest-bearing assets. They are often measured through inflation-protected government bonds and are closely watched as a macro driver for precious metals.

For a gold trader, real yields matter because gold pays no interest. When real yields rise, the opportunity cost of holding non-yielding gold increases, which has historically been a headwind, while falling or negative real yields tend to be supportive. This links gold tightly to rate expectations and inflation data.

Real yields are one influence among many, alongside the dollar, central-bank policy, and physical demand. The relationship is a historical tendency rather than a mechanical rule, so real-yield context is read together with the broader macro calendar rather than in isolation.