TIPS yield breaks support

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The 10-year TIPS yield broke primary support at -1.10% and is currently at -1.128%. Expect retracement to test the new resistance level at -1.10% but respect is likely and would warn of a decline, with a target of -1.60%1.

10-Year TIPS yield

Gold has closely tracked the inverted 10-year TIPS yield over the past 15 years (the left-hand scale is multiplied by -1 to invert). The current divergence signals an advance in the Gold price.

Gold & 10-Year TIPS yield


The 10-year TIPS yield breach of primary support at -1.10% offers a target of -1.60%1 for TIPS and a target of $2200 per ounce2 for Gold.


  1. The target of -1.60% for the 10-year TIPS yield is calculated as the peak of -0.60% extended below primary support at -1.10%.
  2. The Gold target is estimated by extending -1.60% on the inverted left-hand scale across to $2200 per ounce on the right-hand scale.

Quote for the Week

Throughout all my years of investing I've found that the big money was never made in the buying or the selling. The big money was made in the waiting.

~ Jesse Livermore


Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

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