Gold still looks good as Fed underestimates inflation pressures - Midas Fund

(Kitco News) - The gold market may continue to suffer as bond yields move up, according to one fund manager. However, he also warned that investors are losing sight of the looming threat of currency debasement and rising inflation with all this focus on the bond market.

Tom Winwill, portfolio manager of the Midas Fund, noted in a recent interview with Kitco News that not only are bond yields trading at their highest level in almost a year, but they are up significantly from 0.5% seen in August. The yield on U.S. 10-year notes last traded at 1.36%.

So far this week, the gold market has been able to shake off the effects of the bond market as prices hold ground above $1,800 an ounce. April gold futures last traded at $1,804.40 an ounce, down 0.20% on the day.