A common question of late is "Why, with a rising yield curve and rising long term interest rates - which usually go hand in hand with inflation fears - is gold relatively weak compared to stocks and some commodities?"
But in the meantime, we look for answers as to why gold is not responding as it did in 2001, when short term interest rates tanked vs. long rates and savers were punished mercilessly in favor of asset owners and casino patrons of all stripes. There are many valid theories out there. Can it be any other way in a global market arena with so many moving parts and so many apparent contradictions? I will not draw a conclusion here. I simply want to show a chart of the USD and its relationship to the yield curve and gold.
But to investors in true secular trends, the process is all noise. The advice remains the same; manage short term risk, keep an eye on the biggest of pictures and consider that in the markets all things happen as they 'should' in due time.
Source...http://gold.seekingalpha.com/article/38759BTW: check out the chart showing the up turn in the ($TYX) yield curve, which has been rattling US markets recently.