Sunday, August 4, 2013

10 Year Yields & Gold

We continue to keep a close eye on the 2004 interest rate comparative, which describes the last time the Fed transitioned the markets from peak easing initiatives introduced during the throes of the financial crises in 2000 and 2001, to a less accommodative monetary policy regime as the U.S. economy found its footings. 

Should the comparative hold prescience today, long term interest rates are cresting for the year and are about to roll-over and retrace a majority of the explosive move that began this spring when the Fed initially floated the idea of a taper.  
Click to enlarge images
While we recognize that the causal and kinetic backdrop that drives certain asset relationships is a moving target to appraise, a declining rate environment would likely provide a more prevailing tailwind to the precious metals sector going forward. 
*  All stock chart data originally sourced and courtesy of 
*  Subsequent overlays and renderings completed by Market Anthropology