Gold and long-term Treasury bonds are risk ‘off’ bedfellows
If you think that the heretofore inflation signaling 30yr bond yield is approaching an upside limit maybe you think the same about gold’s correction. Gold and long-term Treasury bonds have each been risk ‘off’ in character over the last year. In other words, they are in positive correlation and on the outside of the inflated, punch drunk party.
If the party just keeps on going and the red line limiter is taken out for real this time, I still would not count out gold because we’d be in uncharted territory with the ‘flation likely morphing to a more damaging stag variety.
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