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Gold Intermarket: Metal shines despite record rally in stocks & range bound T-yields
Gold prices clocked 3-1/2 month high of $126387/Oz on Monday. The yellow metal is on a tear since early January despite flat action in the treasury yields and record rally in the US stocks. The 2-year treasury yield, which is more sensitive to short-term interest rate/inflation expectations, topped out on Dec 15 at 1.3% and since then has been restricted to a narrow range of 1.15% to 1.305. During the same time period, gold rallied 12.30%. Such a sharp rally in the yellow metal is usually a result of a sharp decline in the yields. On similar lines, gold’s performance is surprising if we take into account the record ... (full story)