Monday, August 19, 2013

As the 10-Year Yield Sets Another Cycle High A Bit of Nervousness on Gold

The yield on the 10 year bond traded at 2.8660% this morning while gold has been inching up. This can't last and my bet is gold buckles before the yield does.

By one U.S. Treasury data-set the average blended yield on all maturities greater than 10 years was 1.21% at the close on Friday up from .90% on August 7th.
Gold rising in the face of this looks like forced buying and could end at any minute.
Having enjoyed the ride from $1226 to this morning's $1384, we're bailing at $1370.50.
Here's the Treasury's chart of real yield at various maturities.
And here's gold today via FinViz: