GOLD vs. 10Y: Predictive Forces
If Gold can predict the movement in interest rates then, interest rates can predict the state of the stock market.
Gold represents a hedge against inflation. Inflation is characterized by high interest rates because of currency devaluations.
When Gold is sold it represents incoming deflation. Tighter financial conditions lead to a decrease in interest rates.
Referring to the chart. Gold is exhibiting symptoms of being a leading indicator to the movement in interest rates.
White Line: 08/11 to 11/15 - Gold decline; 01/14 to 08/16 - Yields Decline
Yellow Line: 12/15 to 07/16 - Gold increases; 07/16 to 02/17 - Yields increase
etc..
It looks like Gold is telling us that people are hedging against deflation.....
The movement in DXY, TLT, SPY and GOLD all show evidence that supports this view.
Crashes in the price of Gold usually occur 1-3 months before a crash in stocks.
I am bullish on Gold at 1500-1700 levels.
Gold represents a hedge against inflation. Inflation is characterized by high interest rates because of currency devaluations.
When Gold is sold it represents incoming deflation. Tighter financial conditions lead to a decrease in interest rates.
Referring to the chart. Gold is exhibiting symptoms of being a leading indicator to the movement in interest rates.
White Line: 08/11 to 11/15 - Gold decline; 01/14 to 08/16 - Yields Decline
Yellow Line: 12/15 to 07/16 - Gold increases; 07/16 to 02/17 - Yields increase
etc..
It looks like Gold is telling us that people are hedging against deflation.....
The movement in DXY, TLT, SPY and GOLD all show evidence that supports this view.
Crashes in the price of Gold usually occur 1-3 months before a crash in stocks.
I am bullish on Gold at 1500-1700 levels.
Yorum:
tbh... I think my page is criminally underrated. But, Imma stay grinding and collecting that BAG
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