Metals Minute 80: Yield Curve Nearing Inversion

World events over the weekend are leading gold and silver higher, despite the normal tamp-down operations in the paper futures markets. It appears some in Europe are beginning to blink in the standoff with Russia over the new payment requirement of rubles or gold for energy. Ten million Euros have been exchanged for Rubles at the Russian Central Bank to purchase energy already, and the Ruble has regained most of its strength lost from the sanctions.

The metals have been smashed the last few days tremendously with options expiry in view but have already started to trend back up. Gold is flat for the week at $1,938, silver is down 1% to $25.12, platinum is down 3% to $1,010, and palladium down 12% to $2,260.

For one year, gold leads the way, up 15%, silver is up 4.4%, and platinum and palladium are both down 13%.

In other developments, the yield curve of most U.S. Treasury Securities are at or near inversion, meaning longer bonds pay the same or less than shorter bonds. This is historically a harbinger of recession. As we have oft discussed over the past year, inflation + recession = stagflation, causing gold and silver to go multiples higher. Stay tuned.