Gold can lead real yields and its weakness is an indicator of a potential sustained rebound in real yields. Meanwhile, relative strength in Silver, strength in Commodities & extreme selling of Bonds does not indicate deflation. The market action is indicating an economic recovery with inflation but not yet accelerating inflation.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.