Source: Bloomberg
Source: Bloomberg
Asia UnhedgedReal-time intel on what moves markets

US rate move is all about gold

Tensions in Korea and Syria, along with European elections have benefited safe havens

April 13, 2017 8:12 PM (UTC+8)

The 5-year inflation-protected Treasury yield has plunged during the past few weeks as gold has risen. Geopolitical and economic risk (Korea, Syria, European elections) benefit safe havens.

Gold and TIPS trade almost identically as risk hedges. Both are deep out of the money puts on the monetary system.