Invesco says gold has not fully digested the real yield of “higher for longer”—so is there still room for it to fall further? Bond traders have already been dialing back expectations for rate hikes, but the trend hasn’t changed, and gold is indeed at a disadvantage versus Treasuries.

Biworld News, Invesco market strategist David Chao said that gold has priced in the Fed's tightening trend, but has not yet accounted for the sustained "higher for longer" real yield environment. After Thursday's US inflation data release, bond traders have slightly lowered their expectations for Fed rate hikes this year, with the probability of a rate hike next month falling to about one-third. The trend of tightening monetary policy still poses a hurdle for gold, making it less attractive as an investment compared to yield-bearing assets such as Treasuries.