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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.
EMERGING MARKETS
- Gold prices have been under pressure this month as the deterioration in the economic outlook combined with the geopolitical risks have been driving the Dollar higher against all currencies.
- Gold hit a local low at $1,698 Thursday, its lowest level since August 2021, and is down nearly 18% since its all-time high of $2,070 reached on March 8.
- We previously saw that even though support for the precious metal has been weak given the elevated inflationary pressures around the world, gold tends to be a good hedge against periods of market shocks and surging uncertainty.
- Interestingly, the performance of gold has not been that ‘terrible’ if we look at the relative gains versus US equities.
- For instance, the chart below shows that gold has outperformed the SP500 in the past few months (excess returns YoY), which is usually expected when credit spreads start to widen.
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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