Why soaring gold means rising interest rates

US bond yields are up, global economic growth remains strong and the gold price is at record highs. It all points to one thing - inflation is about to take off.

Friday 7 April might have seemed like just another chilly day in Britain's long-delayed spring this year. But events across the Atlantic in the US bond market, in fact could make it an important date for investors everywhere to remember.

On that day, the yield on 30-year US Treasury bonds broke through the 5% barrier. Yields on the 10-year benchmark touched their highest level in four years. Long-standing subscribers of The Fleet Street Letter will know that we have been arguing till blue in the face that bond prices were due to drop and yields were due to rise like this. Now the inflation risks created by loose monetary policy and surging commodity prices are becoming a reality.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More

Brian has contributed to MoneyWeek with his expertise in investment strategy, for example how to quadruple your dividend income and how to navigate through the stock market in the 2008 financial crisis. He’s also touched on personal finance such as the housing market and the UK economy.