$IRX Weekly

The Three-Month Treasury Bill rate, or the Discount Rate has been in a bearish decline for years. This yield is now so close to zero, that it could easily go into negative nominal rates.

We saw negative nominal rates very briefly on debt ceiling debates in the U.S. However a sustained rout in market indeces can drive rates into the negative on wholesale demand for short term bills.

http://scharts.co/1cFDeTH

$Gold Monthly

Gold prices in $US. terms remained above a key retracement level, and though still neutral to bearish on a monthly scale, means that a gold price sell-off is not imminent since long-dated bond rates will probably remain where they are or decline on a major rotation into treasuries.

While interest rates remain on the decline, rather than an increase, this also ensures that rates remain below inflation, and gold performs under this scenario.

That the $CAD has declined against the U.S. $ remains positive for GBN.V investors. That means that a gold price above $1400CDN makes the gold commitment feasible at the close of the Waterton Agreement, which is up on May 9.

http://scharts.co/1f7ky4t

TLT Monthly

Strong correlation between gold prices and treasury bond prices at the long end of the curve are the basis for gold price advances to date.

Gold prices are well behind the mark, and should soon see rallies, despite sell-offs in other markets.

An additional fundamental should be negative nominal rates for bullion investors.

One more market to watch is TIPS, or real-return bonds in the U.S. whether the entire yield curve goes nominal negative on false inflation expectations.

http://scharts.co/1hrKiCY

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$SPTGD Weekly

Over the long term gold mining stocks are continuously devalued by the gold price, regardless. If anything requires a re-rating, it would be gold mining stock prices.

http://scharts.co/18jQ0nJ

-F6