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XAUUSD - Spot gold
XAGUSD - Spot silver
XAUXAG - Gold-Silver ratio
IGLN:xlon - iShares Physical Gold
ISLN:xlon - iShares Physical Silver
Gold has entered September in buoyant mood as it continues its rebound towards $2,000/oz. The combination of a weaker dollar, lower real yields and the US Fed Vice Chair Clarida talking about yield-curve control (YCC) are the key drivers behind the latest move higher. Widely considered influential in setting the Fed’s policy, Clarida was more specific in discussing an eventual yield-curve-control policy in a speech yesterday than was Fed Chair Powell in a major speech last week. He said that while conditions for YCC were not "warranted” at the present time, it “should remain an option that the committee could reassess in the future if circumstances changed markedly.”
Whether for this or for other reasons, the USD dropped to broad new lows, especially against the Euro where speculators through futures have accumulated a record short. While US ten-year yields remained range-bound as per the chart below, the underlying components of real yields and breakevens continues to move in their separate and gold supporting ways.
Today the 10-year US real yield touched a record -1.1% today while inflation expectations as seen through the breakeven rate has reached a 16-month high at 1.82%.