Former JP Morgan Head of Metals Desk Robert Gottlieb breaks down the selling in gold & silver today brought about by the PANIC in the bond market:
“Precious metals under pressure today as the U.S. 10-year Treasury yield makes a new high for the year, reinforcing the market narrative of “higher for longer” U.S. interest rates.
That’s creating a difficult near-term backdrop for #Gold and #Silver, as a stronger USD and rising real yields continue to weigh on investor sentiment.
At the same time, the geopolitical backdrop remains highly uncertain. The market appears increasingly concerned that the U.S. administration has limited control over how the Iran crisis evolves, which is keeping risk premiums elevated in energy and contributing to broader macro volatility. This creates a frustrating crosscurrent for precious metals.
Longer term, geopolitical uncertainty and economic instability should remain supportive for gold and silver.
However, in the short term, when higher oil feeds inflation fears, which in turn push rates and the dollar higher, metals can come under pressure despite the underlying safe-haven narrative.
This is exactly why understanding market structure, correlations, and flows matters, precious metals don’t always react the way headlines suggest they should.
Take a look at the 1-month #Gold vs U.S. Dollar trend on WatchGold.org below, the relationship remains very clear.
Views are my own, for informational and educational purposes only, and not investment advice. #Gold #Silver”
