Where are Treasurys going? Just watch gold The spot gold price - TopicsExpress



          

Where are Treasurys going? Just watch gold The spot gold price may have baffled investors since its move south last December, but analysts at Citi now see the precious metal being a leading indicator of U.S. Treasurys. Gold is about to enter phase two of its bear market, according to the investment bank, after a brief rally and its downside target is now $1,111 per ounce from its current price of $1,231. As well as this bearish outlook, it now sees gold being a leading indicator of U.S. Treasury bills. Gold prices fell before and after (U.S. Federal Reserve Chairman Ben) Bernankes warning about tapering in May, they then stopped falling in July, well ahead of the September FOMC (Federal Open Market Committee) no taper. In fact, by the time of the September FOMC decision gold was falling again, analysts at the bank said in a research note released on Monday.
Posted on: Mon, 25 Nov 2013 10:26:50 +0000

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