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Focus on ​real ​yields: Why the Gold rush isn’t nearly over

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FXStreet/Miles Ruttan/8-4-2020

Image of the word "FED" with a gold coin in the background“As long as US treasuries are trading with negative real yields, gold should have a permanent bid under it. This means dips are likely to be bought into aggressively by investors, especially since the Fed’s Chair Jerome Powell has even stated the Fed isn’t even ‘thinking about thinking about raising rates…’ My guess would be that we have a while to go before gold loses its luster. The same goes for silver … which has a long way to go if it is to match the length of previous bull markets.”

USAGOLD note:  A very clearly presented argument for gold’s upside based on a long term central bank bias toward negative real rates.