Economist Peter Schiff said rising bond yields may ultimately strengthen gold’s appeal because inflation can erode the real value of fixed-income investments. In a post on X on August 18, 2026, Schiff argued that traders selling gold as yields rise may be misreading the market, writing, "Rising bond yields won't compete with gold, they'll drive more money into gold." He said investors seeking to avoid losses could sell bonds and buy gold as an alternative store of value. The view challenges the conventional argument that higher yields reduce gold’s appeal because bonds provide income while gold does not. The 30-year U.S. Treasury yield briefly reached 5.323%, its highest level since 2007, while the 10-year yield remained above 4.7% as investors demanded higher returns amid inflation and concerns about rising government borrowing. The move occurred despite fading expectations for a September Federal Reserve rate hike. Gold had earlier rebounded to $4,367 after a weak July jobs report showed the U.S. economy lost 23,000 jobs, compared with expectations for an 85,000 gain. Lower Treasury yields, a weaker dollar and strong ETF demand supported the rebound; SPDR Gold Shares recorded $896 million in weekly inflows and more than $1.78 billion over the prior month. In the previous month, gold had fallen more than 27% from its January peak as weaker ETF demand and rising Treasury yields pressured prices despite elevated geopolitical risks. Major gold ETFs posted billions of dollars in outflows, while the 10-year Treasury yield reached 4.70%, increasing competition for gold. Technical indicators nevertheless suggested a possible bottom near $3,940 and a potential rebound toward $4,378.