Loading ...Bonds and Gold
The Co Relation between the Yen and Gold has been well documented here at Goldtent.
However there is another very tight Co Relation between Bond Prices and Gold as well.
Thanks to Optional for emailing me the TLT chart ( 10 yr bond price)
I added Gold to show the tight co relation.
Bonds up means interest Rates Down.
TLT has just broke out ….and that is good for Gold !
How far can it go ? Is this just a right shoulder of a BIG H and S ?
Or is it a new trend ?
Note that huge gap !
Opinions ?
That gap is concerning but there isn’t a law that says that they have to be filled and no time line. Couldn’t your top black line be drawn parallel to the bottom one which might give TLT a slight BO though could show false if it starts dropping soon. Then, TLT could bounce between the lines a couple of times until gold drops down to catch up. That would mean that Gold would also have to start dropping very soon which could create a FBO there. I am playing the miners and tend to give most of my attention to them rather than bonds, gold or the dollar. It looks to me like miners will likely hit a top within a couple of days if they haven’t hit it today. Then we’ll just have to see what kind of downward strength the move has.
Swami..if you are a gold bull you want bonds UP…close that gap and gold will be 1350 !
Bonds and Gold are presently married ! I know the line is gold rises with interest rates BUT on balance that is NOT the case for the last several years
Isn’t the fight to hold above the 200 mov. avg. the elephant in the room for this juncture??? Did we not have gold go up with the last 2 rate increases? Gold going up is a personal choice to buy which is driving it up regardless of interest rates in my opinion. If I run to the pawn shop to stock up on rounds, the last thing on the mind is ,’ oh, whats’ da interest rate, us dollar… doing. Also , as the price rises then the mentality of gotta get me on the train to glory.
Of course You and I don’t buy gold based on interest rates BUT clearly the co relation is ABSOLUTE
This simply means at this point in time and for many years now…Gold and Bonds are Risk OFF assets
When there is uncertainty they are both bought. When everything is hunky dorey they are both sold.
Safe havens
Fully, I’m a bull when the miners are going up. I will probably be selling NUGT today and going into JDST or DUST with a close watch on strength in the downward direction. If the strength isn’t there, then I’ll be a bull again. The miners haven’t been joining in gold’s recent enthusiasm. I can’t get with the excitement of the running of the bulls until the 200dma’s look better for them. The gold chart is looking much stronger than the miners and TLT but since I’m playing the miners, I have to go with what I see there.