Gold vs the 10yr yieldThis is a ratio chart.
Gold is on top
10 year Yield is on bottom
in the middle you can see the ratio between gold prices and the 10yr yield rising and falling.
As you can tell, when the ratio reaches a low, gold prices tend to rise and yields tend to fall.
Vice/versa when the ratio is at a high, Gold prices tend to fall, and yields tend to rise.
Of course the ratio chart is not "CAUSING" the prices to rise or fall.
In my humble opinion, we are relatively close to the long term low point on the ratio chart.
Meaning that either gold prices should rise and or yields should fall, and or both maybe...
Barrons has recently published a piece saying that rising supply of gold could contribute to prices ending the year around 2100. usd
This would be a drop in price, and doesn't fit in with my narrative.
It might be interesting to see how this ratio plays out, and perhaps it will help you form a bias for your next Gold trade!
