Sunday, 11 September 2016

Steve Saville - Explaining Moves in the Gold Price

Gold price drivers / correlations  

These are traditional flight to safety associations. 
The question will be if bonds turn as interest rates rise, if the Yen weakens due to central bank actions will gold automatically fall?

Jeff Gundlach at DoubleLine
“This idea that fiscal stimulus may be coming seems to be getting sniffed out by the bond market,” Gundlach said. More debt spending may increase the cost of government borrowing by adding supply and making investors demand higher yields...........Gundlach told Reuters this summer that his firm went “maximum negative” on Treasuries on July 6 when the yield on the benchmark 10-year Treasury note hit 1.32 percent. The 10-year now yields around 1.60 percent. All told, Gundlach said he turned short-term negative on gold and gold miners but has not sold any of his firm’s positions.

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