Real yields drop lower
Real yields spiked higher on Wednesday last week on anticipation of the Fed being forced to taper early. However, since then, real yields have moved lower. The falling US10 year yield will keep that momentum going lower.
This is a near term bullish picture for gold.
Real yields = nominal bond yields - inflation. The higher inflation gets, the lower real yields fall and this has the potential to send gold much higher. All as long as the Fed stay bearish and don't think about tapering.
