Data-Driven Commodity Research, The Commodity Report

The Commodity Report

A unique newsletter about commodities and macro analysis in a weekly format.

Data-Driven Commodity Research

Commodities

<ul><li>Gold Anomaly As Warren Pies wrote in a post last week, the current performance of Gold is really an anomaly, both plotted against TIPS and the USD-Index.</li><li>This anomaly once again highlights the importance of thinking of gold as a liquidity hedge - it is not primarily an inflation hedge or always highly correlated with the USD or inflation expectations.</li><li>Warren wrote that 2024 (and also currently) is the fifth calendar year with positive 10y TIPS yields and positive gold returns (2005, 2006, 2008, 2023).</li></ul>

Gold Anomaly As Warren Pies wrote in a post last week, the current performance of Gold is really an anomaly, both plotted against TIPS and the USD-Index.This anomaly once again highlights the importance of thinking of gold as a liquidity hedge - it is not primarily an inflation hedge or always highly correlated with the USD or inflation expectations.Warren wrote that 2024 (and also currently) is the fifth calendar year with positive 10y TIPS yields and positive gold returns (2005, 2006, 2008, 2023).