The Gold Market Takes Guidance From the Inverted Yield Curve

April 25, 2023

by GoldMoney Staff Gold Money

Gold and Silver prices continue to show remarkable strength despite strong headwinds from both real-interest rate expectations and realized real-interest rates. Inflation as reported through the CPI (Consumer Price Inflation) has been above short-term rates for nearly three years. However, with the Fed raising rates at the fastest pace since WWII, short term rates have now finally caught up with reported inflation. This means that realized real-interest rates are now close to zero again, the first time since the beginning of the COVID-19 pandemic (see Exhibit 1).