Money Aggregates Climbing Again

As I forecasted here, we now see the money aggregates go up again after a slow start in 2013 (Chart 1), which also means that money velocity will go down. So you can expect that U.S. treasury yields will go down as GDP is likely to go down too with the declining PMI.

As U.S. treasury yields go down, we have a perfect environment for gold to reverse its downtrend considering the negative real interest rates.

Chart 1: Money Aggregates