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Is the geopolitical rally in gold exhausted?
On paper, last week had all the elements to be incredibly bullish for gold. Yields on US government bonds came crashing down, which in turn inflicted heavy damage on the US dollar. Both of these developments are normally positive for gold prices, and yet the precious metal was unable to advance. Yields are essentially the price of money, so they can be considered interest rates that are determined by markets. Gold doesn’t pay any interest to hold, so when yields or interest rates fall, the metal becomes more attractive by comparison. In similar logic, because gold is denominated in US dollars, a weaker dollar is ... (full story)