Gold entered risk-averse mode tonight. This time, it is hedging against the dangers of global government bonds. We can see that in addition to US Treasuries, bond yields in other major countries around the world are also soaring.
The biggest reasons for this are not only high inflation expectations but also concerns about the sustainability of massive debt,
While gold previously followed their trends, tonight it broke out on its own independent trajectory, which is clearly driven by risk-averse sentiment. Although it hasn't reached a level of danger where a collapse is imminent, the market is preparing for rain while the sun shines and hedging early.
$iShares barclays 20+ Yr Treasury Bd(TLT.US)$Direxion 20+Yr Trsry Bull 3X(TMF.US)$VG S&P 500(VOO.US)$Invesco QQQ Trust(QQQ.US)$SPDR Gold Shares(GLD.US)
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