Gold shows flight from stocks: BofA

Yahoo Finance’s On The Move panel weigh in on the latest stories making headlines.

Video Transcript

JULIE HYMAN: Jared, you're looking at a new Bank of America survey that shows a flight to gold and bonds, which certainly we've seen reflected in the prices.

JARED BLIKRE: Yeah, and also cash. Pretty interesting weekly report here. So inflows of cash were $22.7 billion. Bonds were $17 billion, mainly in the corporate space. We did see some net outflows from US government bonds. And then gold-- another $2.7 billion into gold. And outflows from stocks, $7.4 billion.

But all of this in light of the fact that we've seen this huge decrease in the price-- in the trading of US dollar. In fact, if we look at the DXY, which we have on the YFi Interactive, over the last three months, huge decline here. But we do have potentially the makings of a W bottom.

So the pain trade would probably be a squeeze to the upside. A lot of people banking on a depreciating US dollar but also a move concurrent with that in the 10-year T-note yield to the upside, potentially. We are seeing a big reversal in the 10-year T-note yield of 3 basis points to the upside, so we'll have to take a look at that and keep an eye out for that.

Also kind of looking like gold is looking top heavy here, along with silver. But pretty big trading ranges for all of these instruments over the last few days.

JULIE HYMAN: Thank you so much, Jared. Yeah, the run that we've seen in gold in particular, and silver along with it, has been pretty incredible. Jared, thank you so much.