SDHY - Extreme Divergence In The Gold Market

• Rising rates are such a problem for gold bullion that gold bullion and major gold stocks are where they were before the COVID pandemic crashed the U.S. stock market at this time last year. In other words, they have wiped out all the pandemic gains.
• The bid in the dollar is significantly smaller than the $300/oz or so selloff in gold bullion off its record high above $2,000 last year. By looking at gold bullion, you would think we have a raging dollar bull market, yet all we can see on the old US Dollar Index is the proverbial dead-cat bounce.
• As Treasury yields have spiked, credit spreads to junk bonds have shrunk. This is how the junk bond market behaves in a recovering economy.

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