Gold Slump Continues

Gold has slipped into seven-week lows as Treasury yields continue to climb. Investors don’t seem to favor Gold at these prices and that is even with inflation above 2 percent and may close the year over 3 percent as Janet Yellen had testified to in June.  

Fed Chairman Jerome Powell; not to be outdone by Yellen, told the Senate Banking Committee that the supply-side bottlenecks the inflation surge have “gotten worse.” So why then are we seeing Gold not press forward and instead slump for seven straight weeks? 

Gold is holding up despite yield and dollar strength, and gold guru Peter Grant said “the longer the debt ceiling brinkmanship plays out, the more roiled markets are likely to become.” Which makes the average investor wonder if we are seeing in this market getting ready to outperform all expectations to the upside. 

Investors should take note that gold mining shares were trading higher for the most part as notable tickers like IAG were +4.5% , but even the mining companies has its losers like Kirkland Lake Gold sinking -8.1%

The sentiment on gold seems to be shifting to a less catastrophic tone and has lost its earlier gains.  

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