It is getting scary out there. The LBMA has now lost all control over the gold market, even as the Fed now has the entire bond market in the palm of its hand. A little earlier spot gold passed a new record price of $1,364, which as the chart below shows, demonstrates a parabolic blow off or something in the precious metal, while in bond land the 2 Year has collapsed to 0.37%, an unprecedented low yield. There is a possibility gold will take out $1,400 within days. Not to be left alone, the 10 Year has also surged and is now touching 2.39%, bringing it to within 11 bps of the Bund, the tightest spread since December 2009. In other news, today will be another day in which both deflation and inflation win at the same time, leading to major confusion for everyone in the prediction game. And with gold already up 1% on the day, stocks will continue to be down in real terms.
Gold Surpasses $1,364 As 2 Year Drops To New Record Of 0.37%
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