Yields on 30-year bonds and oil make new decade long highs dragging down gold - KITCO
Yields on 30-year bonds and oil make new decade long highs dragging down gold - KITCO
Source: KITCO
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DW NOTE
The 30-year yield hasn't mattered this much since Volcker because it hasn't had to compete with triple-digit oil in a decade. Gold is losing to bonds not because inflation expectations are falling — oil is at $102 — but because real rates are finally positive after five years of financial repression. When you can get 5% on a Treasury while crude doubles off its lows, the zero-yield hedge becomes the luxury good.