Gold, Treasury Notes, Dollar – May 2011

The long term trend for gold, Treasury Notes, and the US Dollar seems to be holding up.

There has been some noticeable action in Treasury Notes most recently, in particular since February 2011 investor’s appetite has been growing again and thus rates have declined and remained within the range that has been developing since 2008:


Gold’s trend has been holding up steady as always:


As you can see in the chart there has always been room for dips in gold, and that is not different now. It may very well drop somewhere between 1,300 or 1,400, however, so far it has always done so only to bounce back even stronger after that. In particular when the next credit crunch happens it is possible that gold will see some dips alongside all other commodities, but then come roaring back up while other commodities continue to crash. This is at least what happened in 2008 and it may well happen again.

… and the seemingly most hated currency in the world has also remained within it’s long term trading range, and it may be possible that once again it will show some significant strength for the months to come:


The deflation trade has been dormant for a while indeed, but its expected trends have held up so far, and its benefits are most noticeable when everything else snaps back into the general trend of the Great Depression 2.0.

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