Is the future of bonds carved in gold? (Treasury bonds; correlation between bond market, Knight-Ridder Commodity Research Bureau index and gold prices)

Futures (Cedar Falls, Iowa), February, 1995 by Pawlicki, Tom

Treasury bond prices can be predicted by examining the correlation between bond prices, the Knight-Ridder Commodity Research Bureau (CRB) index and gold prices. Studies confirm an inverse correlation between bond prices and the CRB, which is touted as an excellent predictor of inflation. Gold, on the other hand, has been found to be an excellent indicator of CRB trends. According to historical data, peaks and troughs in the CRB usually follow fluctuations in gold prices by between less than one month and 17 months.

Technical analysis of the Treasury bond market provides a good tool for predicting prices. When the T-bond, Knight-Ridder Commodity Research Bureau (CRB) index and gold markets are analyzed together, the tool becomes even better.

Bonds, obviously, are...

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