13.02.2014 - Stronger yields could erode gold prices
As the US economic continues to gain traction, yields will begin to rise which should benefit the US dollar. Since gold prices are quoted in dollars, it is treated by the investor community as a currency pair that weakens as the dollar rallies. As US yields climb the attractiveness of the dollar, which will erode the value of gold prices, pushing them lower relative to the greenback. The SPDR Gold trust ETF (GLD) holds gold futures and therefore is a robust proxy for the price of the yellow metal. Prices broke through long term support and are trading within a 6-month trend channel...............................................Full Article: Source
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