Loading ...Yield curve TNX to IRX 3 months rate vs Silver to gold ratio (SGR)
Previous post below outlined relationship of Yield spread vs gold sector.
Lately it has become clear now these following relationships
Yield spread between TYX ( 30 yr T rate) and FvX (5 yr T rate) is positively related to HUI/XAU.
Yield spread between TNX (10 yr T rate and IRX ( 3 months T Bill) is positively related to Silver to gold ratio.
Plotting these two combo charts makes it clear these relationship.
Bottom line for awhile as 30yr T to 5yr T rates widens HUI will continue to rise despite SGR (inverse GSR) is in the trading range.
As long as 10yr T rate and 3months T bill rate remains inverted SGR will continue to drop with the spread.
Yield curve is inverted.
In the market there is huge divergence between Yield spread on short side of Treasury rates vs the long ended Treasury bonds rates. Once this divergence corrected (with widening ) in the same direction watchout for PM sector to explode to upside. ????
Thanks Bikoo. Somehow I managed to miss that post back in June. I think we’re seeing huge trend reversals starting to take place, marking the end of one ‘era’ and the beginning of the next.
You put it very well. Yes Tell you the truth I am seeing a very booming PM sector which will make 176-1980 blush. But I am handicap in putting in writing like most here specially Plunger.
My Yield curve posts are on sidebar under Yield and Gold. Thanks to Sir Fully. He saw some value in these posts.
Thanks.
Great post – are you suggest a massive rise of gold imgrester than 800% A’s was the case from 76-80?
Yes. You got it right. Soon I will post article connecting all three indicators and will make the case for huge rally in micro juniors .