A funny thing has happened since the Federal Reserve announced it would begin cutting back on its bond-buying on
December 18, 2013: the yield curve has flattened like a pancake.
Gold descended through the key psychological level of $1,200 on Thursday:
This has now led a whole bunch of people getting excited about an upcoming
bottom in gold, as well its prospective speedy revival. Read more
In the last few years China has become the single
largest producer of gold.
It is also, by some measures, the second largest global
consumer of the precious metal outright.
Given this, some goldbugs are befuddled as to why, despite all this Chinese buying and scenes like this…
….gold prices are still falling like this:
Following up on our
previous post which referenced some interesting goings on in the eurodollar markets, we bring you this chart courtesy of the ICAP rates team:
Last week, Kit Juckes at SocGen was one of many analysts who, after looking at the latest FOMC minutes, found fit to arrive at one overriding conclusion: the era of Risk-on, Risk-off (RoRo) investing is arguably coming to an end.
As he explained…