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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- Last year, the strong momentum in global equities have left gold prices vulnerable; the precious metal was down 3.6% in 2021 following a 25.1% appreciation in 2020.
- However, investors’ interest on gold has been rising this year amid surging geopolitical uncertainty.
- While equities have experienced tremendous volatility in recent weeks, gold confirmed once again its ‘safe-haven’ status.
- Momentum on precious metal has remained firm since the start of the year despite the strong USD and the surge in real yields; gold is up 1.5% against the USD since the beginning of January.
- Gold broke above its $1,850 resistance on Friday following strong rally that day; next level to watch on the topside stands at $1,877.15 (Nov. 16 high).
- The chart below shows that periods of surging price volatility (VIX) have been associated with a spike in the Gold/SP500 ratio.
Source: Bloomberg/MNI.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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