Gold Hits Two-Year High

Gold is up to a two-year high this morning. The yellow metal has been as high as $1,377 per ounce. That reflects a belief that real interest rates are going down. With that, Treasury bonds continue rally. The yield on the ten-year got down to 1.34%.

The 2/10 spread is now below 80 basis points. That hasn’t happened since November 2007.

The stock market is down a little but it’s broad. I haven’t checked the numbers but it seems like most members of the S&P 100 are off 0.2% to 0.6%.

Earnings season is set to begin next week. Alcoa will report on Monday. Wells Fargo will be the first Buy List stock to report, and that will come next Friday.

Posted by on July 6th, 2016 at 9:58 am


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