Source: Bloomberg

The chart shows the yield on 5-year Treasury Inflation Protected Securities (TIPS) vs. the gold price since the US presidential election at 15-minute intervals.

US “real” yields are NOT a good gauge of economic conditions, but rather a measure of risk aversion: TIPS and gold are the favorite hedges against economic disaster. Real yields have crept down and the gold price has crept up in recent weeks because the residual risks to the world economy are significant–starting with Europe.