Gold Resilience Continues Despite Elevated Real Yields and Hawkish Fed Expectations
28 August 2026
Precious metals continued to consolidate near recent highs overnight, despite elevated real yields and increasing market expectations for further Fed tightening in its December meeting.
Gold's ability to remain above its 200-day moving average (USD $4,535oz) while rate hike expectations rise remains constructive. This suggests that supportive drivers such as ETF inflows, ongoing central bank demand and fiscal concerns continue to outweigh traditional headwinds from higher real yields.
Daily Performance
Gold: -0.4%, currently trading at USD $4,607oz and AUD $6,405oz
Silver: +0.7%, currently trading at USD $69.4oz and AUD $96.5oz
Platinum: +0.6%, currently trading at USD $1,855oz and AUD $2,578oz
Key Market Drivers
US July PCE inflation came at 0.2%, broadly in line with expectations, putting the annual inflation rate at 3.7%. Since the data release, markets are pricing in a marginally higher probability of a Fed rate hikes later this year, with a 75% probability in December (CME Group) which remains a short-term headwind for precious metal.
Despite elevated real yields (US 10-Year real yield trading at 2.34%), gold continues to find support from concerns around long-term US fiscal sustainability, growing debt issuance requirements and the US Treasuries recent intervention in the bond market.
The US Dollar Index (DXY) although strengthened 0.2% over the last two trading days, this figure remains 2.3% below what it was a month ago, providing a modest tailwind for precious metals.
Luke Tyler
Senior Analyst, ABC Bullion
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