by Dave Kranzler, Investment Research Dynamics:

A good friend of mine mentioned that CNBC’s website featured a positive article on gold on its front headlines page on May 27th. He was wondering if he should be worried when one of Wall Street’s public relations outlets turns bullish on the precious metals. It’s a valid question. However, one of the “experts” cited in the article was a strategist from Australia’s ANZ Bank, who attributed the price rise in the metals to “weakness in the U.S. dollar” and “retreating U.S. Treasury yields.”

This was curious because that assertion is easily fact-checked. As it turns out, yes the dollar index is 1.8% below where it was trading at the beginning of May, but it’s 4% above where it was at the beginning of 2024. Furthermore, the 10-year Treasury yield is considerably higher now than at the beginning of 2024 (4.55% now vs 3.87% then). In fact, the entire yield curve from the 2-year Treasury out to the 30-years Treasury has been trending higher since the beginning of the year.