Bonds agree with the Yen

As I’ve been noting, the Yen pairs have all been struggling, despite the Euro pushing higher. That says risk aversion is still rampant.

Now take a look at this article:

http://www.gold-eagle.com/editorials_08/summers080410.html

Yields on 10-Year Treasuries are still dropping. In fact, they are near the levels they were at during the worst part of the 08 crash. And as one of the charts shows, Treaury yields have diverged from equities very significantly during this latest rally.

Be very careful. It wouldn’t be a surprise if equities have turned the corner or will shortly and head into a new bottom this October. What that means for gold remains to be seen. It’s possible with de-eleveraging we could get as low as $900. But gold has been consolidating at high levels and the 200 DMA is already at $1150. Hence, I go back to my assertion that $1040 to $1000 may be the lowest we see.

And we may see another pop up in gold before a general crash takes over. That only matters to traders, and with gold, trading is not recommended.

Let me just repeat my usual disclaimer: the decisions you make with your money are your own. This blog is not intended to be financial advice or trading advice. My goal is to present a viewpoint on markets generally and gold in particular. That viewpoint is an opinion only. You are responsible for what you do with your money.

This entry was posted on 08/08/2010 at 06:31 am and is filed under Gold. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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