Gold Heats Up, China’s Gold-Backed Bond Move, and the 10-Year Treasury Note’s Ominous Rise
On October 20, the quartet of leading stock indices —
Dow Jones (DJI), S&P 500 (INX), Nasdaq Composite (IXIC), and the Russell 2000 (RUT) — witnessed declines ranging
from 0.8% to 1.5%. Concurrently, just a day earlier, the yield on the benchmark
10-year Treasury bond climbed to a staggering 5%, a peak not touched in 16 years.
By Friday, this 10-year note was coasting along
at 4.92%, marking a significant 38.6% rise over the past half-year. Simultaneously, WTI Crude and Brent Crude hover in
the range of $89 to $92 per barrel, a significant climb from their $70 per barrel trough at June’s end.
The crypto world showcased its resilience following the misleading ETF news on October 16, especially given that it had previously faced setbacks due to the
conflict between Hamas and Israel just a week earlier.
In recent times, precious metals have certainly made their mark. Gold is on the cusp of the
$2K per ounce threshold, currently trading
at approximately $1,980 per ounce, marking an 8.5% uptick since the start of the year.
Gold has showcased its resilience as a trusted safe-haven asset in recent times, though this doesn’t guarantee its future stability. As it approaches its historic peak of
$2,074.88 from August 2020, gold bugs are watching with bated breath. However, it’s essential to note that while gold’s performance has been commendable,
bitcoin (BTC) and the broader crypto economy have outpaced the gains seen in precious metals.
