by Alasdair MacLeod
Gold continued to recover some ground this week to consolidate at the $1800 level. In European morning trade this morning, gold was $1805, up $16 from last Friday’s close, but still down about 5% on the year so far.
Silver underperformed gold, falling 55 cents on the week to $25.95, perhaps more in line with a consolidating commodity complex. Driving the wider commodity relationship has been a persistent rally in the dollar’s trade weighted index, which is our next chart.
The rally in the TWI is part of a broader confused scene. With rising consumer prices, one would have expected to see interest rates and bond yields rise. But the reverse has happened, as indicated by the yield on the 10-year US Treasury bond.