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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.
GOLD
- In the past few weeks, the total amount of negative-yielding debt, which could be seen as a measure of market stress, has been falling, despite the recent rise in price volatility.
- The amount of debt trading in negative territory fell by nearly $2tr since its high of $16.8tr reached on August 5 to $15tr.
- The chat below shows that negative-yielding debt has been a major driver of gold prices in the past 5 years (in addition to real rates).
- Hence, while some investors expect gold prices to skyrocket amid rising uncertainty and falling growth expectations, a temporary fall in the total amount of negative-yielding debt combined with a stronger USD (as Fed taper nears) could weigh on the precious metal in the near term.
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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