“Davidson” submits:
Normally Gold falls with a rising US$, but in times of global stress US$ and gold rise together and with increased terror activity capital flows have forced 10yr Treas % to record lows.
I think this is a fear of foreign governments losing control over terrorist activity vs. US. Capital flees to the US. The US has been the historical peacekeeper and foreign governments often asked for and received US help. The US response to terrorism has generally provided support to foreign currencies, but this is eroding under the current administration. Fear is gaining in strength. Capital flows to areas deemed safe havens. The normal inverse relationship between US$ and gold in times of high stress becomes a correlation.
The past few days reveals a rise in global panic with several hundred people killed in terrorist attacks in multiple locations.
