US10Y Yields Has A Strong Inverse Correlation To Gold
The US10Y yield and gold have a strong inverse correlation. When yields rise, gold tends to fall.
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Bond yields, especially US 10 year bond yields are inversely correlated to gold prices.
One of the key drivers for Gold in both the med and long-term is US real interest rates or real yields, which is basically just your current yield or interest rates minus inflation.
As the US10Y is the benchmark rates on which many other rates are based on, investors always keep close track of US10Y and by extension real yields or rates.
As US10-year bond yields move higher, real yields move higher, and as they move lower, real yields move lower. And we know gold has an inverse correlation to real yields and thus US10 year yields as well.
Tradingivew does have a way to keep track of real yields but it’s only updated daily, and not real time which doesn’t make it very handy from an intraday point of view.
Alternatively, we can look at moves in the US10Y as having an inverse reaction in gold prices.
As interest rate expectations rise, so does bond yields, and gold moves lower, and then the vice versa is also true.
So, you can have them on the chart in its normal scale and look for any divergence between Gold and US10Y, but I prefer to look at the yields with an inverted scale to see the correlation a bit easier and simpler.
Apart from bond yields you can also look at tips, which is inflation protected treasuries and due to the inflation component tends to track gold quite tightly, but as it only trades during US hours it’s a messy chart and not useful during non-us trading hours.
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There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
Bond yields, especially US 10 year bond yields are inversely correlated to gold prices.
One of the key drivers for Gold in both the med and long-term is US real interest rates or real yields, which is basically just your current yield or interest rates minus inflation.
As the US10Y is the benchmark rates on which many other rates are based on, investors always keep close track of US10Y and by extension real yields or rates.
As US10-year bond yields move higher, real yields move higher, and as they move lower, real yields move lower. And we know gold has an inverse correlation to real yields and thus US10 year yields as well.
Tradingivew does have a way to keep track of real yields but it’s only updated daily, and not real time which doesn’t make it very handy from an intraday point of view.
Alternatively, we can look at moves in the US10Y as having an inverse reaction in gold prices.
As interest rate expectations rise, so does bond yields, and gold moves lower, and then the vice versa is also true.
So, you can have them on the chart in its normal scale and look for any divergence between Gold and US10Y, but I prefer to look at the yields with an inverted scale to see the correlation a bit easier and simpler.
Apart from bond yields you can also look at tips, which is inflation protected treasuries and due to the inflation component tends to track gold quite tightly, but as it only trades during US hours it’s a messy chart and not useful during non-us trading hours.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
