Gold does not give yield and when interest rate increases, the opportunity cost of holding gold diminishes.However, for the last 2 years, we have seen both US interest rate and gold prices increasing. That's why gold is inching up.Now, one of the headwinds gold may face in the near future is real yields moving from negative to positive. Up until now because of depressed real interest rate, real yield was in the negative, but now with a rising interest rate, this year real yields have turned positive. The chart here shows large bearish divergence emerging between gold prices and real yields. So, real yields are going to remain high.Second, gold prices are correcting and we can see the gap decreasing.

Source: Economic Times April 10, 2018 13:52 UTC