“The potential for an increase in r* to justify higher real rates is the one case which seems unambiguously bearish for gold. In this case, higher real rates would be justified by a higher trend growth rate and, therefore, a still positive backdrop for most risk assets,” said Garvey.

Related: Ray Dalio: ‘Two Years Left’ in Current Market Cycle

Job Data Pushes Treasury Yields Higher

U.S. job openings hit a record high in July as it nears the seven million mark with notable rises in vacancies within the finance and manufacturing sectors. Treasury yields rose across the board on this latest data reported by the Labor Department.

As of 2:30 p.m. ET, the benchmark 10-year yield went up to 2.977 as it inches towards the 3% yield marker. In the meantime, the 30-year yield went up to 3.122, while short-term yields showed the 2-year ticking higher to 2.748 and the 5-year to 2.869.

The number of vacancies outnumbered those classified as unemployed by 659,000 during July. Job openings rose by 117,000 from June to 6.94 million, which represents an increase of 737,000 over the past year.

In addition, the Bureau of Labor Statistics reported that the quits rate, which measures employees leaving their positions voluntarily, hit a new record of 3.6 million–a rise of 106,000 compared to the previous month. The current quits rate of 2.4 percent is the highest number recorded since April 2001.

“Mobility of workers between jobs boosts competition for talent and puts pressure on employers to offer better pay and benefits,” said Cathy Barrera, chief economist for online job site ZipRecruiter.

For more trends in fixed income, visit the Rising Rates Channel.