Gold Getting Whacked As US Yields Rise On Vaccine News
The dollar isn’t faring too badly and is actually a little up on the day despite having widely been adopted as a safe haven asset. This is very much not a risk-averse day but it seems it’s the yen that’s taking the brunt of the hit, while risk currencies are doing very well.
Interestingly, gold is getting whacked in the wake of the vaccine news. US rates are rising on the back of the announcement and that’s bad news for the yellow metal which has fallen as low as USD1,900, having traded above USD1,950 ahead of the release. Investors now clearly betting on a stronger economic recovery and everything that comes with it.
Perhaps we’re now seeing a bit of a reset moment for gold, where its correlation with risk assets starts to fade and it returns to its traditional […]
November 10, 2020 Published by StockMan