Gold Just Spiked

Gold is surging.

In afternoon trade on Monday, gold futures were up more than 1% to north of $US1,200 after a sharp $US10/ounce rally in just the last few minutes.

Gold is surging as both stocks and oil are falling, with the Dow off almost 150 points, the Nasdaq down more than 1%, and crude oil falling to multi-year lows.

Amid the decline in oil and stocks, markets are taking a “risk off” approach to trading on Monday.

In a “risk off” environment, assets like Treasury bonds and gold are would be expected to gain, and on Monday the US 10-year was rallying, with yields falling below 2.25% in afternoon trade, an almost 10 basis point move from Friday’s lows.

Here’s the rally.

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