Loading ...Yield Curve
Continues to Drop unabated …in spite of the Fed raising Short term rates.
Long term rates are not rising as fast
From what I understand we want to see a Higher yield curve ( inflation expectations) for Gold to rise.
Do I have that right ?
Added….Long term Yield Curve chart
Presently Gold is decoupling BUT one thing for sure
Gold’s Parabolic Rise into the 2011 Top was accompanied ( CAUSED) by a very large spike in the Yield Curve after the GFC.
Both Gold and this Yield Curve topped exactly the same time.
maybe that’s why we find Gold so “Interesting”
🙂
Interesting question … a tad too abstract even for me.
IMO, gold does well when CBs are behind the curve. Rates are lower than they should be given growth and inflation. That should be when the yield curve is inverted and CBs shift into action mode by dropping short term rates to reassert an upwards sloping yield curve.
Then, gold does badly when the CBs engage in “oops” too hot … time to catch up by raising rates and slow the beast. Normally though, that’s after yield curve is already quite steep.