Gold bid on banking woes
A spate of bank failures in March could be the first serious cracks to appear as a result of unprecedented monetary tightening. As a crisis hedge, gold is responding as expected. Read more here…
#Gold's Q1 performance told an interesting story as financial cracks began to appear. How do you think the rest of the year will play out? https://t.co/IsjtY8v80u
A spate of bank failures in March could be the first serious cracks to appear as a result of unprecedented monetary tightening. As a crisis hedge, gold is responding as expected. Read more here…
Gold’s price has dropped by almost 7% since the end of May. Most of the move can be attributed to an increase in interest rates following last week’s US Federal Reserve (Fed) FOMC meeting. Gold’s reaction is not surprising given that it has experienced higher sensitivity to interest rates over the past year
The US Federal Reserve (Fed) announced an emergency 50bp rate cut yesterday, bringing the Fed funds rate down to a 1-1.25% range, in response to ongoing concerns about the potential impact of the coronavirus outbreak to the global economy. Treasury bond rates followed suit, with the 10-year note hovering 1% at the time of writing – an all-time historical low
Multiple drivers propelled gold investment in the first half of 2019. We expect this trend to continue in the second half of the year.
Week ending 29 March 2019
Against the backdrop of turbulent markets, geopolitical risk and Fed rates hikes, gold closed 2018 on a strong note, outperforming most global asset classes. World Gold Council’s Joe Cavatoni and John Reade discuss 2018 trends and explore key dynamics likely to influence gold performance in 2019.