The attractiveness of Gold is tarnished
When cash instruments yield a positive rate of return
More and more people are getting on board of higher interest rates
(Dimon, Santelli)
But u can see the Gold price has been inversely correlating with the rate of return for decades.
It's bull run in the 2000's along with the commodity bull , coincided with real rates trending to less than zero. Gold Topped a few months prior to that negative reading in 2012!
The current triple top that has been in place for he past 3 years , seems to be in danger of breaking down if rates continue up the next few years.
The key level to watch is last year's lows in October around $1611
Which I believe is a distinct reality if rates head up to 7%
When cash instruments yield a positive rate of return
More and more people are getting on board of higher interest rates
(Dimon, Santelli)
But u can see the Gold price has been inversely correlating with the rate of return for decades.
It's bull run in the 2000's along with the commodity bull , coincided with real rates trending to less than zero. Gold Topped a few months prior to that negative reading in 2012!
The current triple top that has been in place for he past 3 years , seems to be in danger of breaking down if rates continue up the next few years.
The key level to watch is last year's lows in October around $1611
Which I believe is a distinct reality if rates head up to 7%
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.