Gold Bulls Lose Steam for Now as Yields Trump Inflation Bet
- Investors are switching away from haven asset as yields rise
- Recovery in Asian jewelry demand offers support for bullion
Photographer: Akos Stiller/Bloomberg
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Gold has in little over two months gone from being a favored reflation bet to heading for its worst first quarter in almost four decades.
The change of fortune comes as higher yields dent the appeal of bullion, which offers no interest. At the same time, optimism that the rollout of Covid-19 vaccines will drive a global recovery has pushed investors to switch from the traditional haven to other assets.