Anxiety levels are rising and Treasury yields are falling. The pairing isn’t unrelated, but the depth of the fall in government yields is astounding nonetheless.
Daily Archives: August 23, 2011
Strategic Briefing | 8.23.2011 | Soaring Gold Prices
Gold Tops $1,910 for First Time
Bloomberg | Aug 23
“Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens,” Peter Richardson, chief metals economist at Morgan Stanley Australia Ltd., said by phone from Melbourne. “All of that tells me that this is really all about preserving real purchasing-power.”
Gold futures drop after strong run higher
MarketWatch | Aug 23
Citigroup strategists raised their price forecasts for gold, a move they said was made “to accommodate the impact that global financial tension is having on the metal. Fears about sovereign defaults and currency debasement have left many investors concerned about switching from equities into government bonds, and cash hardly looks an attractive alternative when real rates are negative. Gold has therefore been the main beneficiary of all these concerns,” they said.