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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
- In the past few weeks, we saw that gold prices have remained firm despite the rise in real yields (i.e. fall in inflation expectations) and the sharp fall in the total amount of negative yielding debt.
- The chart below shows the recent breakdown of the relationship between gold prices (in USD) and the total amount of negative-yield debt, which could be seen as a measure of market stress.
- While the amount of debt yielding below has dropped from 14tr USD in mid December to below 5tr USD, gold prices have been oscillating around $1,800 (per ounce).
- Investors’ interest for the precious metal could start to surge this year as global uncertainty rises due to DM tapering/normalization.
- Gold confirmed its status of ‘zero-beta asset’ last month and appreciated up to $1,853 when volatility exploded mainly due to the Russia-related tensions.
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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