Rising gold price and spiking global yields reflect investor fears about skyrocketing debt levels – Invesco’s Hamilton - KITCO
Rising gold price and spiking global yields reflect investor fears about skyrocketing debt levels – Invesco’s Hamilton - KITCO
Source: KITCO
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DW NOTE
Invesco spots the correlation but misses the causation. Yields aren't spiking because investors suddenly fear debt levels — U.S. federal borrowing has run above $1 trillion annually since 2019. Yields are spiking because the Fed is preparing to hike into a supply shock, with oil up 21% in a month and the Strait of Hormuz closed for six months. Gold falling 16% from its January peak while yields climb 80 basis points since spring tells you which risk the market is actually pricing.