Many gold market analysts focus on irrelevant, but catchy factors, such as mining production or jewelry demand. Others think gold is a simple inflation or stock market hedge. It is a bit strange that the relationship between the bond and gold markets is not commonly examined, given that bond market is much bigger than stock market, while real interest rates are one of the main drivers of the price of gold.
If you have even the most basic understanding of bonds, bond pricing, interest rates and how these are reflected / seen in financial markets as a whole have a quick read of this article at Gold Switzerland which quite accurately outlines my general feelings about gold, usd, bonds and our current set up heading into 2017.
Couldn’t agree more….this year is gonna be interesting.
Anyway…….gotta run to the gold shop….