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14:18
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Originally posted by eshmun:
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pete11, you've been around these markets for a long time. With the HUI down 4.78%, the GDX down 3.81%, the GDXJ down 3.52%, and US$ gold price down 2.42% what do you think the price of NST will open at on Monday? The trend for gold is down, the trend for bond yields is strongly up, risk assets are starting to be sold, so the USD dollar has caught a slight tailwind as people start looking for exits. As mentioned in my last post, US treasuries are not really any different to the US dollar. When people sell a US 10 year treasury note today (sending yields up) and exchange those treasuries for US dollars they are essentially saying that a US dollar today is worth more than the net present value of a US dollar in 10 years time, even after you factor in the yield. That means the bond market today has a negative out look for the USD over the next 10 years so the long/medium term expectation in the eyes of bond traders is for the USD to fall.
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Very well said. Kim
(20min delay)