Gold and Silver Strengthen Amid Falling Real Yields and Seasonal Demand
Gold continues to shine as the 10-year TIPS yield declines, reducing the opportunity cost of holding non-yielding bullion. Large funds have increased their exposure to the metal this year, while central banks and ETFs provide steady demand, establishing a firm price floor.
Silver faces tighter physical supplies due to India's festival-driven buying and slower imports. Retail demand for small coins and jewelry remains robust, particularly in key markets like India and China.
This week's focus turns to US inflation data and Fed commentary, which could sway real yields and the dollar. A sustained drop in real rates WOULD further bolster gold, while a rebound may cap gains.