The Gold-Bond Correlation And Other Macro Observations
By GCRU Gold News on Tuesday, August 29 2017, 00:46 - Permalink
We wrote many years ago that gold often takes on many personalities at any given time:
Gold is a weird cat with multiple personalities and more than nine lives. The yellow metal is up almost $100 since last Friday’s weak U.S. employment report.
At any given time period gold will assume any one of its multiple personalities based on a fundamental story and trade as: 1) a safe haven; 2) an inflation hedge; 3) a commodity; 4) a store of value against central bank balance sheet expansion; 5) an alternative currency; 6) central bank reserve currency; 7) a diversification asset; 8) an Armageddon hedge; and/or 9) all of the above.
– Global Macro Monitor, June 6, 2012
Add to that, what we have induced through market observation, the potential for a gold-bond tracking risk-on/risk-off algorithm. That is algos programmed to track gold with the bond on an almost daily basis.