Gold and silver are pushing higher today, and the move isn’t happening in isolation.
The U.S. dollar is weakening, while the U.S. Treasury’s decision to expand purchases of longer-dated government bonds has put downward pressure on yields. That combination is usually supportive for non-yielding assets like gold and silver.
Gold has climbed to around $4,600, its highest level in roughly three months, while silver has moved toward $70 an ounce.
But what catches my attention most is what sits behind the move.
The Treasury is trying to ease pressure in a bond market dealing with enormous government borrowing, while concerns about U.S. debt and fiscal sustainability are returning to the foreground.
That is a pretty favorable backdrop for hard assets.
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