Gold Futures
Long

Long Gold as Gold and TIPS out of correlation

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Gold price is here inverted, but it looks like there could be some potential upside as it is lacking behind the 10-year treasury inflation-indexed rates (TIPS) and they are normally correlated.

This is because when real rates rise the price of gold normally falls because it does not generate a yield.

Either rates will rise or gold will go up, but it looks like a safe bet to invest in gold here.

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