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Investors Cautious: Treasury Yields Drop And Gold Steadies

Record Amount
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EDITOR NOTE: Gold saw a sizable pullback that undoubtedly freaked out a lot of less-informed gold investors. Since then, yields declined, stabilizing gold’s price. If you’re upset about this seeming plunge in the yellow metal, then you’re dancing to the rhythms of short-term volatility. No investor should do that with any asset, regardless of what it is. Now if you’re a short-term trader,  that’s another matter altogether. But look at the big picture. When yields rise (are you following those?) they tend to get pushed down (the Fed’s internal operations?). Fiscal spending is rampant amid a pandemic that sees no clear end as of yet. And even when it finally does end, the economic damages will be with us for years to come. The Fed changed their framework toward a pro-inflationary 2% averaging range. That will raise inflation in the coming years, as it’s their goal to do so. What does that mean for gold? Anytime falls in the near-term means it’s time to buy. Think big picture. Don’t invest with the mentality of a small day trader.

Gold steadied as Treasury yields declined, following bullion's biggest drop in two months.

European stocks and U.S. equity futures fell, with investors starting Monday in a cautious mood as they digested the prospects for increased spending under President-elect Joe Biden. Expectations for more aid have helped fuel a rally in risk assets. 

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