Editor's note: Originally published at tsi-blog.com on September 10, 2019.
[This blog post is an excerpt from a commentary published at TSI on 1st September 2019.]
It’s well known that the US$ gold price often trends in the opposite direction to the US real interest rate. This relationship is illustrated by the following chart in which the real interest rate is represented by the yield on the 10-year TIPS (Treasury Inflation Protected Security).
Notice that the 10-year TIPS yield has just gone negative, and that the previous two times that this proxy for the real