Next Leg In The Rally? Extreme Positioning In Gold, Silver, 10-Year Bonds Has Moderated

Jon Alternative Media, Blogosphere, Economy, Gold, Market Commentary, Precious Metals, Silver

Since the summer of 2015 the long gold, long 10-year US treasury trade bonds has basically been one in the same (silver and treasury bonds have moved in tandem as well).
Investors saw gold rally from under $1100 to nearly $1400 (silver from $15 to $21) as 10-year treasury yields fell from 220 bps to less than 140 bps. As the momentum of this trade really gained steam, we saw commercial traders aggressively position themselves for gold prices (and silver prices) to decline and for yields to back up.

This post was published at Zero Hedge on Oct 27, 2016.