October 8, 2018 -- The gold price rose $10/oz last week and closed back above $1,200/oz while silver ended the week nearly flat, although the metals are selling off here today.

The bond market faced heavy selling. The yield on the 10-year Treasury note rose nearly a quarter percent last week. Rates have not been this high since April 2011 – which was, coincidentally, just before gold and silver prices peaked.

Contrary to conventional wisdom about metals prices being inversely correlated with interest rates, falling rates did not help gold and silver prices in the years that followed 2011. Gold bugs can hope rising interest rates will not hinder prices now.

The equity markets, which stand near all-time highs, should be more vulnerable than metals to a regime of higher interest rates. And, should we see serious turmoil in the financial markets, the fear should translate to buying in metals.



Check out live precious metals prices here:
https://goo.gl/gy5XMA