There are coincidental indicators for trading, and there are incidental indicators. Knowing the difference between causation and correlation is where the real value in charts and technical analysis is found.
Traders are wondering what to make of this recent volatility in gold? They ask - “why is gold correcting with oil at record highs, and inflation making headlines?”
The answer is -
“What the 10 year giveth… the 10 year taketh.”
The first chart tracks the yield in the 10 Year Bond vs. Gold’s recent run up beginning with the Fed rate cuts last fall to it’s recent March top, and the 2nd chart tracks the recent moves in gold vs. 10 year bond yields over the last 5 days.
I’ll post some interesting charts on gold vs. currencies later this weekend.
SliderOnTheBlack
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