August 19, 2019 – Although we’re seeing a small pullback today, gold and silver finished last week higher once again. The rally which began in late May continues.

Concerns over trade and volatility in the stock markets are helping to push gold and silver prices upwards.

The growing inversion in bond yields is historically a reliable signal for trouble ahead in stock prices. Shorter duration bonds are yielding more than those with longer durations.

That is backwards and implies investors are more and more worried about the near term. They are bidding up prices for longer term bonds such as the 10-year Treasury, thereby reducing the yield.

The inverted yield curve also undermines the Fed’s efforts to prop up the entire banking system. The Fed funds rate is now higher than the yield on most Treasury bonds.

Gone are the days when America’s largest banks could simply print money by borrowing at 0% via the Fed’s discount window and buy Treasuries yielding 2-3%.

Many economists think the Fed has little choice but to continue dropping rates.




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