Bonds Like the UK Inflation News and Japanese Stocks Have Reason to Like the 'Takaichi Trade'

Precious metals stumble but the long-run gold story remains; yields ease and the “Takaichi Trade” supports Japanese stocks

Key Takeaways

• A Pullback in Gold as Speculative Positions Ease, Trend Intact: It is very clear what has happened to the gold price — the net speculative long position on the COMEX is being shaken out. While not at a record high, the overall bullish positioning in the futures and options pits had recently been near the high end of the historical range. We have endured at least a dozen intermittent corrections in the bullion price since the secular bull phase began a quarter-century ago, and they haven’t prevented the price from enjoying a 15x run-up.