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Saturday, May 05, 2018 12:29:10 PM
One Of These Things Is Not Like The Other
Many gold bulls are frustrated that during last year’s U.S. dollar decline, the precious metal didn’t rally more strongly.
![](http://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/20180504-dog.png?itok=Z0Q5RKsY)
This makes intuitive sense. Gold is an asset that is no one’s liability, but has no yield. In an environment of minuscule real yields, the opportunity cost of holding gold is low, so it is bid up. When central bankers increase the real rate of interest, this cost increases, and gold is replaced with income-earning fiat.
But the sharp-eyed reader will notice something ominous about that chart. Over the past half-year, US 5-year real yields have spiked to new highs (new lows on the chart).
Here is the same chart with a shorter time frame
![](http://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/20180504-goldtip.png?itok=53GKAjRU)
https://www.zerohedge.com/news/2018-05-05/one-these-things-not-other
![](http://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/20180504-coppergold.png?itok=Jo0aciHA)
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