The S&P finished slightly higher last week, but these two asset classes moved lower for the first time in what seems like months. Can you guess what they are?
Interest rates moved higher last week resulting in bond prices moving lower. The 10-year U.S. Treasury yield crossed above .70 for the first time since Mid-June. The result is that many bond products are negative for the month. Gold, too, had a difficult week last week after an incredible move higher, with a sell-off that was pretty ugly.
For the week ahead, lets continue to follow interest rates and gold. Looking at the 10-year Treasury yield does the climb higher continue? Of interest is the .75 level. This seems to be a key resistance level and a break above could see the Treasury yield heading to .90 or even 1.00%. For gold, with news that Berkshire Hathaway and Warren Buffett invested in the Toronto-based gold miner Barrick Gold, what effect will this have on the price of gold. Do we see many of the gold sellers of last week turn into buyers this week?
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