marathon99

Gold Long Update with Yields insight

Long
marathon99 Updated   
TVC:US10Y   US Government Bonds 10 YR Yield
Here I am looking at Gold with yields, specifically 10 year bond yields comparison in 2019. Look at 10 Year bond yield at right near it's bottom coincide with Gold's Top on left chart. What is going on? As bond yields being driven down by world's central banks with interest rate cuts, including Fed in USA, all these investors are looking for a place to go to seek better yields. Yes, some money will stay in low yields as the aging population will keep safe investment as their priority even if it's low yields. With 10 year bonds below 2% many investors are seeking yields by going to stocks and Gold. Keep in mind many countries are in negative yields, meaning below 0 %, incredible and these investors are fleeing to positive yields. There is currently 1.6 trillion cash caught in negative yields looking for a place to go. Low and negative yields is very positive for gold. The more Fed cuts only adds fuel to Gold as those negative yields investors that been chasing USA bond yields will be forced to Gold or stocks and yes silver too. Trump has been yelling at Fed to cut even more.
Comment:
Of course we know Gold had been a hedge on Trade war, but here I'm just doing a comparison on Gold and yields.
Comment:
Another way to look at it is with this chart showing Gold and negative yields. 11.6 Trillion in negative yields looking for place to go. www.flickr.com/photo...512@N07/49306983387/
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