Gold Stocks Enter the Contrarian Dream Zone

  • 📰 KitcoNewsNOW
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 78%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Gold Stocks Enter the Contrarian Dream Zone kitconews gold silver metals economics investing finance mining

The gold complex came under more pressure this week on the reiteration by the US, UK, and European central banks that they are willing to do whatever it takes to combat inflation at the Annual ECB Forum on Wednesday. This was followed by more selling into quarter-end on Thursday, despite U.S. 10-year Treasury yields moving below 3%.

Getting inflation back to the Fed's 2% target will involve "some pain," the increasingly frustrated Fed chair reiterated, but noted that "the worst pain would be from failing to address this high inflation and allowing it to become persistent." Moreover, the sharp decline in U.S. 10-year Treasury bond yields this week is threatening to cause the yield curve between ten-year and two-year bond yields to invert. A drop of the shorter yield over the longer yield is another sign of recession.

The recent decline in yields supports gold but at the same time, risk aversion is pushing commodity prices to the downside and the U.S. dollar higher. Although Gold Futures managed to end Q2 above the key $1800 level, the safe-haven metal printed its worst quarter in five as the U.S. dollar hovered near a recent two-decade peak and posted its best quarter in over seven years.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 13. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

From Suncor to Shopify, Canada Stocks Whipsaw on Recession Fears(Bloomberg) -- This was supposed to be a blowout year for Canadian equities, benefiting from soaring commodity prices and a forceful post-pandemic rebound in consumer spending. Instead, the country’s benchmark index is slumping amid the global stock selloff, though not as badly as its US counterpart.Most Read from BloombergStock Doomsayers Vindicated in Historic First Half: Markets WrapThe Wheels Have Come Off Electric VehiclesDemocrats Weigh Paring Biden Tax Hike to Win Over ManchinSupreme Cour
Source: YahooFinanceCA - 🏆 47. / 63 Read more »