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.  

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