HALISTER1: UST-Gold Correlation Hits Record; 76.4% Fibonacci Levels Intact

UST-Gold Correlation Hits Record; 76.4% Fibonacci Levels Intact

(Bloomberg) -- U.S. 10-year Treasury yields and spot gold have seen their 30-week rolling inverse correlation hit a record at -0.98, Bloomberg technical analyst Sejul Gokal writes.
  • See LIVE chart
  • Following the breakout moves in the aftermath of U.S. elections, both have recently defended their long-term 76.4% Fibonacci levels at 2.64% and 1,124 respectively (see here)
  • Correlation analysis:
    • 6-month r-squared at +0.93 vs +0.36 seen in previous 6- month study period (01/2016-06/2016); standard error of beta has gone down by almost 10x vs level exhibited in first half of 2016
  • NOTE: Sejul Gokal is an technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

To de-activate this alert, click here

UUID: 7947283