ECB Changed Monetary Strategy: Will It Alter Gold’s Course?
Author Arkadiusz Sieron | Published by Goldbroker ™ | Jul 11, 2021 | Articles 1797

It seems that gold is reacting now more to the decrease in the bond yields rather than to the changes in the US or EU monetary policies. As long as the interest rates are declining, gold is catching its breath. But this decrease may be temporary, so better watch out! Powell’s testimonies to Congress next week could provide us with more clues about gold’s outlook.

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Gold Is Lagging Behind The Yields
Published by Laurent Maurel | Jul 7, 2021 | Articles 8075

In the last few weeks, gold has not followed the curve of the rates and there is now a decorrelation between the 10-year rates and the gold price. Since 2009, the two indices have been following one another fairly closely, and the latest gaps between the curves of these two indices have always been sealed at a short maturity in the past. The last time the rates were at this level, with a dollar as weak as this, gold was at around $1950, meaning that there is fairly sizeable potential for a further rise for gold if this catching up were to take place.

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