If you’ve caught our last couple of bulletins, you’ll have heard plenty about US Treasury Yields. In the last few weeks, they have created a window to buy on the dip after ascending to a one-year high, and then helped to stimulate a price surge after falling alongside the US dollar.
While there is buzz about yields finally picking up, that’s no reason to be down on gold. In fact, following Federal Reserve Chairman, Jerome Powell’s comments last week which wrote off any significance to the price spike, research firm Wood Mackenzie has gone further, saying this week that the yield increase doesn’t have a bearing on gold bulls.
The firm’s head of gold research, Rory Townsend said that they see the yield prices as being temporary, and its long term outlook for gold remains unchanged as bullish. He said, “Gold has come down quite a bit from its August highs and we think this selloff is a little overdone. We just don’t think bond yields will rise indefinitely. We expect to see a resurgence in gold in the second half of the year as inflation picks up.”
As we find ourselves waiting for the upside to kick in once again now is the perfect time to buy. Act quickly – as we have seen this week, prices can surge without warning.