Traditional POG/Bonds relationship
by: Casual_Techwatcher 10/01/04 09:01 pm
Msg: 438257 of 439063
Traditional POG/Bonds relationship may be returning to normalcy, or at least for this week --- POG rallied 11.50 while 30-yr bonds dropped almost 2 big points. Historically gold and bonds go in oppositise directions, as both tend to be inflation indicators. However, this relationship has been temporarily shifted since 911, as flight to quality has overtaken inflationary concerns.
Gold's long term trend should be opposite to that of bonds, and return to that relationship for this week may signal a shift in market thinking that should favor the PM sector.
JMHO
Casual Techwatcher
10/01/04