New Delhi, Nov. 17 -- Something unusual is happening in global financial markets that Indian investors need to understand. Gold has broken above $4,000 per ounce while US Treasury yields remain stubbornly elevated above 4%. This simultaneous rise defies conventional wisdom. Typically, when bond yields rise, gold falls because investors can earn returns elsewhere. But that's not happening this time. This breakdown in traditional correlations is a warning signal.

Normal vs current market dynamics

Rising yields traditionally signal economic strength, pulling capital from gold to bonds. Today, however, yields climb owing to debt concerns and fiscal stress, not opportunity. Investors fear future money-printing and seek out gold as a hedge ag...