Bond Yields Signal the Low in Gold and Silver is Getting Closer - David Brady (08/11/2019)

Nov 08 14:11 2019 Print This Article

Nov 08, 2019

There are few more bearish signals than a

failed breakout to the upside and the sell-off in precious metals this week is

a perfect example. Gold broke its low of 1465 on October 1 to reach its lowest

level since August 2.

Silver fared likewise, reaching its lowest

level August 13.

On a more positive note, the miners have

been more resilient. They lagged the metals on the final move higher in late

August, early September, and now they’re lagging on the downside. This

reinforces the view that this is the final dip before a rally to new highs

next.

Much of this move down in metals is being

driven by what is happening in the bond market. Correlations come and go and

that makes them unreliable. But there are those correlations that persist over

time, despite clear breakdowns for short periods. The relationship between Gold

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Sprott Money

Established in February 2008, Sprott Money Ltd. is a leading precious metals wholesale, institutional and retail dealer selling gold, silver and platinum bars, coins and wafers online and over the phone. Sprott Money's storage program gives clients the ability to store their precious metals in multiple storage facilities located in Canada, the United States and internationally. Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

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