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<p>[QUOTE="yakpoo, post: 1729398, member: 18157"]Looks like gold is heading down to its next major support level ($1330). </p><p><br /></p><p>A strengthening economy requires less stimulus...good! That indicates that folks holding low rate bonds are gonna get clobbered if they hang on to their positions...so they're selling them off...pushing up rates (panic in the streets!). <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" /></p><p><br /></p><p>Higher bond yields suck money from commodity and equity markets. However, at some point, rates level off as improving returns draw money back into equities. As stimulus continues to be removed from the market, you should see a regular oscillation as money flows between stocks and bonds; a good opportunity for intermediate term traders. PMs will stabilize...but at much lower levels.</p><p><br /></p><p>:thumb:[/QUOTE]</p><p><br /></p>
[QUOTE="yakpoo, post: 1729398, member: 18157"]Looks like gold is heading down to its next major support level ($1330). A strengthening economy requires less stimulus...good! That indicates that folks holding low rate bonds are gonna get clobbered if they hang on to their positions...so they're selling them off...pushing up rates (panic in the streets!). :D Higher bond yields suck money from commodity and equity markets. However, at some point, rates level off as improving returns draw money back into equities. As stimulus continues to be removed from the market, you should see a regular oscillation as money flows between stocks and bonds; a good opportunity for intermediate term traders. PMs will stabilize...but at much lower levels. :thumb:[/QUOTE]
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