Of Gold And Bonds, Gold Is The Leader by Alex Saitta
ARTICLE SYNOPSIS ...Of Gold And Bonds,
Gold Is The Leader
by Alex Saitta
Does gold lead the bond market, or is it the other way
Previously, we uncovered strong
coincidental relationships between
gold and the dollar, inflation,
bonds and the CRB index.
As bond traders, though, we are
most interested in the relationship
between gold and the bond
market. Looking at the past 20
years of data (Figure 1), we noticed
gold's reversals have led bond yield reversals. Looking
beyond the peaks and valleys and considering all the data,
does gold have a tendency to lead the bond market?
To answer this question, we a...