Gold Sub-$4300 as Western Bond Yields Soar, China Builds Bullion Reserves

AI desk brief

Gold traded below $4,300/oz in London as rising Western bond yields and expectations for another Fed rate hike weighed on prices, even with global equities near 5-week lows and WTI above $100/bbl. U.S. 10-year Treasury yields hit 5.04%, the highest since July 2007, while UK 10-year gilts rose to 5.44%, German Bunds to 3.57% and Japanese JGBs to 3.04%, reinforcing the short-term headwind from higher real-rate pressure.

Offsetting that, the article highlights ongoing official-sector demand: ICBC Standard says central banks continue to accumulate gold as diversification away from USD assets, and Goldman Sachs argues reserves are being added at an increased pace since 2022 after the Russia asset freeze. The WGC said China’s official gold buying accelerated in August, while Goldman estimates China’s “true” central bank buying at 35t in July versus about 20t officially reported; Shanghai gold also flipped back to an $11/oz premium to London, signaling firmer local demand.