![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-gold-yields.png?w=525&ssl=1\")
<\/p>\nGold is in a primary up-trend, after ranging sideways for several years, fueled by low interest rates and volatile currency markets.<\/p>\n
The chart below highlights the inverse relationship between gold and 10-year Treasury yields. When LT interest rates fall, the gold price surges.<\/p>\n
<\/p>\n
At present, 10-year Treasury yields are close to record lows, testing long-term support at 1.50%.<\/p>\n
![\"10-Year](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-tnx.png?w=525&ssl=1\")
<\/p>\n
Yields in Germany and Japan are much lower, having crossed below zero, and the opportunity cost of holding physical assets such as Gold is at record lows.<\/p>\n
![\"Negative](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-neg-yields.png?w=525&ssl=1\")
<\/p>\n
Volatility in currency markets is another factor driving demand for Gold.<\/p>\n
China’s Yuan is testing support at 13.95 US cents. Breach is likely, especially if US-China trade talks break down again, and would signal continuation of the primary down-trend. A weak Yuan fuels Chinese demand for Gold.<\/p>\n
![\"CNYUSD\"](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-cny.png?w=525&ssl=1\")
<\/p>\n
The Dollar Index continues to edge higher, boosted by the current trade turmoil. A strong Dollar is likely to weaken demand for Gold but Trend Index peaks below zero warn of selling pressure.<\/p>\n
![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-dxy.png?w=525&ssl=1\")
<\/p>\n
Gold is testing support at $1495\/ounce. Breach would warn of a correction, while breakout above the descending trendline would indicate another advance.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-gold.png?w=525&ssl=1\")
<\/p>\n
Silver is similarly testing support. Breach of $17.50\/ounce would warn of a correction.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-silver.png?w=525&ssl=1\")
<\/p>\n
The All Ordinaries Gold Index is trending lower. Breach of 7200 would warn of another decline, with a short-term target of 6500, while recovery above 8000 would suggest another advance.<\/p>\n
![\"All](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-10-10-xgd.png?w=525&ssl=1\")
<\/p>\n
Patience is required. Gold is in a long-term up-trend, with a target of the 2012 high at $1800\/ounce. A correction would offer an attractive entry point.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold is in a primary up-trend, after ranging sideways for several years, fueled by low interest rates and volatile currency markets. The chart below highlights the inverse relationship between gold and 10-year Treasury yields. When LT interest rates fall, the gold price surges. At present, 10-year Treasury yields are close to record lows, testing long-term … <\/p>\n