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What Does the Flattening of the Yield Curve Mean for Gold?

Annie Gilroy
What Does the Flattening of the Yield Curve Mean for Gold?

A yield curve tracks the yields of Treasury securities maturing at different time periods. The narrowing of the difference between these yields is usually referred to as the “flattening of the yield curve.” The more concerning thing is when the yield curve (BND) inverts, which means that the yields on shorter duration securities increase those on the longer-term securities. The inversion of the yield curve has been a good indicator of an upcoming recession in the past.