Gold Price Premium Remains High Despite US Bond Yield Surge - globalbankingandfinance.com

AI desk brief

Gold is holding above $4,000/oz even as 10-year US Treasury yields hit their highest since 2002, underscoring a structurally higher post-2022 premium driven by reserve diversification and geopolitical hedging. Reuters cites MKS PAMP’s Nicky Shiels estimating the debasement/de-dollarisation premium at about $840/oz now, versus roughly $120/oz pre-2022, while gold has already traded as high as $5,595 before easing back to around $4,161.

Central-bank and investment demand remain the key supports: China imported 1,077 tonnes of gold in the first eight months of 2026, on track for the strongest annual pace in 11 years, and Poland continues to add reserves. HSBC says heavy ETF liquidation is reversing, with gold-backed ETF holdings near record highs and institutional bar demand still robust.