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October 2, 2009 / Jeb

Analysis on Treasuries (TLT) and Gold (GLD)

Right now treasuries are rallying to its 200 day moving average.  The 200 day moving average is sloping downwards and acting as a resistance line.  I would be surprised if the treasuries will continue moving higher as there is a lot of resistance at the $100 level.

tlt

A common misconception amongst investors that treasuries are less risky than precious metals.  As you can see by the chart gold has been significantly outperforming treasuries.   I do believe the treasury rally will encounter resistance and overhead supply will create some selling pressure on treasuries.  Gold and silver’s pullback here is an unbelievable opportunity to add to positions.

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