So there is one instance where gold price and US Yields have convergence in direction... The 4 years leading up to the housing market bubble. I would be very concerned if we were only now entering a 4 year cycle to the top.
Look at the trend from 1980 till now. The downward pattern is crystal clear. If the US10Y goes up, the entire economy will crash. The Fed balance sheet already passed 8Trillion and the national debt is racing above $30 Trillion. And that doesn't even include social security, medicare, and other commitments. Plus, if rates go up, banks will be overburdened with deposits. The reverse repo market already spiked because banks are trying to get rid of liquidity from deposits by buying (actually leasing overnight) treasuries from the Fed. Higher rates will cause the Fed and states to be insolvent and banks to be unable to meet SLR requirements.
VenomousTrader
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@braingirl1994 I am in no way stating a possible change of trend, but a 0.81 fib pullback from the recent low is easily within trend channels. This is completely based on TA not fundamentals, and I did highlight the previous time showing gold and 10y having parallel movment led up to a crash.