Yield Curve Relentlessly Steepens, Gold Builds A Handle

Founder & Editor @ NFTRH.com
January 12, 2021

Yield Curve steepens under inflationary pressure while Gold’s monthly chart patiently builds its Handle.

Another week, another yield curve steepener and continuation of the trend that began in August, 2019.

Flipping to the bigger picture I added in SPX, Gold and the CRB commodity index for reference. With the levels of TMM (total market manipulation) injected in the markets since Ben Bernanke cooked up the diabolical macro manipulation known as Operation Twist I can’t pretend to quant the past to the present…

…but one observation above is that gold is in a giant and bullish Cup with the Handle-making as anticipated since the correction began from a higher high last summer, still in process.

Ref. a November post, Building Gold’s Handle

Here is the updated chart from that post. It always was going to be an extended grind to put in a proper Handle on this monthly chart. Gold is doing good work and it is doing it in a preferred (i.e. not Goldilocks) environment. Goldilocks is a product of a flattening yield curve’s boom, and a steepening yield curve is either inflationary bullish or deflationary bearish. Or as per the last cycle, both.

This is definitely not Goldilocks, which not coincidently attended gold’s bear market every step of the way.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

********

Gary Tanashian is founder and editor of the popular Notes from the Rabbit Hole (NFTRH). Gary successfully owned and operated a progressive medical component manufacturing company for 21 years, keeping the company’s fundamentals in alignment with global economic realities through various economic cycles. The natural progression from this experience is an understanding of and appreciation for global macro-economics as it relates to individual markets and sectors.


The periodic symbol for gold is AU which come from the Latin for gold aurum.
Top 5 Best Gold IRA Companies

Gold Eagle twitter                Like Gold Eagle on Facebook