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Gold Is Grinding Its Gears Waiting For A Breakout

(Kitco News) – Once again, we end the week with gold prices treading water, stuck in a narrow range between $1,700 and $1,750 an ounce.

The gold price doesn’t look like it will be going anywhere anytime soon, but there is some hope as there is still a lot of optimism in the marketplace.

The topical question of the day remains just how much further can bonds selloff? How high can yields go in the current environment where the Federal Reserve is not expected to raise interest rates for the foreseeable future?

Unfortunately for gold, there is a growing consensus that bond yields have room to move up as they hover around a 13-month high. Some firms now see the yield on 10-year notes rising to 2.5% by the end of the year.

This week I had a chance to talk to Kristina Hooper, chief investment strategist at Invesco. She said that in the current environment where the U.S. expects to see a robust recovery, it makes sense that bond yields should be higher. Read more…..

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