Bond market uber alles. Yields could rise to the point where they threaten governments, including that of the United States. From Alasdair Macleod at alasdairmacleod.substack.com:
EU defence spending plans are driving German, French, and Italian bond yields higher. Japan’s are soaring too. The dollar is sinking: what does it all mean for gold and silver?
This week, the end-February decline in gold and silver prices appear to be over, with a recovery based on a firm undertone. In early European trading this morning, gold was $2,920, up $60 from last Friday’s close, and silver $32.60, up $1.50.
Despite the recent transfers of physical gold into New York, there still appears to be a bear squeeze in place. Look at how Comex Open Interest has declined in the last few months as gold has continued to rise (upper chart):
Silver appears to have been behaving more normally until last week, when Open Interest fell significantly and the price less so. It points to a firm undertone, reflected in silver’s outperformance relative to gold in the last four trading sessions.
These are dollar prices. But the dollar weakened considerably this week against the euro and the yen, reflected in the next chart of the USD TWI.
Pingback: Global bond yields rising, by Alasdair Macleod — Der Friedensstifter