gold and real rates
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Started by bear - May 31, 2019, 10:24 a.m.

gold often has a jump as may rolls over into june.  other than that,  june is mostly a down month for metals.

but the big reason for the jump today,... consumer prices are up,  but 10 yr bond yields are down.  one main reason that gold goes up is due to negative real rates.   if the 10 yr yield is going down and consumer prices are going up, then you want to own gold.

so if  bonds pays less than inflation,  then gold tends to go up.

if  bonds pays more than inflation, then gold tends to go down. 

(of course this tends to ignore the whole issue of whether the official inflation figures are accurate or not). 

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By metmike - May 31, 2019, 11:28 a.m.
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Thanks bear!


This post got buried down low but it's right up your alley.

https://www.marketforum.com/forum/topic/30977/