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Wednesday, June 05, 2013

Bonds Yields Rising & Gold

Given the recent action in the bond market, how does this affect the price of gold?  It all depends.

If bond yields are rising in the event of a weakening dollar, or weakening economy, or inflation, that's very positive for gold.

However, if the bond yields are rising, because the Fed is aggressively tightening or selling off bonds, this is negative for gold (and stocks).

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