Gold Rises to Eight-Week High on Dollar Outlook, Real Yields

Gold climbed to a eight-week high, topping $1,900 an ounce, as lower U.S. real yields and a weaker dollar helped the metal build on the biggest annual advance in a decade. Silver jumped, while platinum was little changed after touching the highest since 2016.

Real yields -- the difference between nominal benchmark bond yields and the rate of inflation -- fell close to last year’s nadir. The decline is being driven by a rise in inflation expectations, with investors betting that vaccine distribution, further central bank support and continuing government aid will see demand rebound in 2021. On Monday, the 10-year break-even rate -- a measure that draws on pricing for inflation-linked Treasuries -- rose as high as 2.01%, the highest in more than two years.