Gold Continuing to Closely Track the TIPS spread

Here is an updated chart. Note how the pair is moving almost exactly in unison. As inflation expectations subside, gold prices move lower. As they increase, gold prices move higher.

Incidentally, for those tracking the Euro currency, it bounced off of support near that stubborn 1.35 level once again. I find that most remarkable given the more hawkish tone of the Fed of late in regards to interest rates and the continued lackluster performance of the overall Eurozone economy.