Yield Curve Relentlessly Steepens, Gold Builds A Handle

Yield Curve steepens under inflationary pressure while Gold’s monthly chart patiently builds its Handle

Another week, another yield curve steepener and continuation of the trend that began in August 2019.

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yield curve

yield curve

Flipping to the bigger picture I added in SPX, Gold, and the CRB commodity index for reference. With the levels of MMT TMM (total market manipulation) injected in the markets since Ben Bernanke cooked up the diabolical macro manipulation known as Operation Twist, I can’t pretend to quant the past to the present…

(Click on image to enlarge)

yield curve

…but one observation above is that gold is in a giant and bullish Cup with the Handle-making as anticipated since the correction began from a higher high last summer, still in process. Ref. a November post, Building Gold’s Handle

Here is the updated chart from that post. It always was going to be an extended grind to put in a proper Handle on this monthly chart. Gold is doing good work and it is doing it in a preferred (i.e. not Goldilocks) environment. Goldilocks is a product of a flattening yield curve’s boom, and a steepening yield curve is either inflationary bullish or deflationary bearish. Or as per the last cycle, both.

(Click on image to enlarge)

gold

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