By Andrew Butter The latest idea coming out of the “Hedge-Fund” camp that I saw to explain the recent climb in the price of gold as expressed in US dollars is “Real” interest rate. Leaving aside what is “real” and what is illusion for a moment, if you take a timeline of the US 10-Year Treasury yield and subtract the published CPI number you get to one (of many) estimates of “real” interest rates. Then you cumulate that number, you can build a reasonably decent “explanatory” model to explain the price of gold, since say January 2002. Month on month the correlation between those…
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