Gold still looks vulnerable and under pressure due to the US Bond yields set to hold their gains.
Higher real bond yields are bad for non-yielding precious metals, but the combination of unchanged nominal yields and higher real yields (as is the case today) is even worse, as it implies that inflation expectations have fallen (remember that precious metals are seen as an inflation hedge). Good luck.
Higher real bond yields are bad for non-yielding precious metals, but the combination of unchanged nominal yields and higher real yields (as is the case today) is even worse, as it implies that inflation expectations have fallen (remember that precious metals are seen as an inflation hedge). Good luck.
Comment:
BROKE EVEN AND CAME OUT THIS TRADE (ASIAN MARKET 23:40PM GMT RISK MANAGEMENT REASONS) GOLD IS LOOKING UNDECIDED TO ME. NEED BETTER CONFIRMATION BEOFRE RE-ENTRY.