Investors Don't Fear 3% Bond Yields
Tuesday, 13 February 2018 05:10 WIB | GOLD CORNER |Gold OutlookGold Corner

The gold market does not have to fear rising bond yields, as inflation expectations are keeping real interest rates muted, according to one investment firm.

In a report, Monday, Maxwell Gold, director of investment strategy at ETF Securities said that gold prices still have room to push higher even as the yield on 10-year notes rises to 3%. The comments come as 10-year bond yields have increased to 2.86%, their highest level in 4-years.

Despite rising yields, the gold market is starting the week on a positive note, as the price bounces further off last week™s five-week low. April gold futures last traded at $1,327 an ounce, up 0.86% on the day.

Traditionally, higher bond yields are negative for gold because they raise the yellow metal™s opportunity costs.

œThe true driver for gold is real interest rates, which is why even though current US yields approach 3%, gold investors should not panic, said Gold. œInflationary pressures and inflation expectations continue to rise commensurately keeping real interest rates low and range bound.

Not only are investors turning to gold as a hedge against inflation, but Gold said that the yellow metal™s safe-haven appeal should also not be ignored.

œAdditionally should rising yields spark further volatility in equity markets, gold may benefit as investors flock to defensive assets and risk hedges such as the yellow metal given its historically negative relationship with persistent equity market drawdowns, he said.

Along with low real interest rates, ETF Securities noted that a weaker U.S. dollar has helped drive gold prices in the first month of the year. The firm noted that gold prices rose 3.32% in January while the U.S. dollar fell 3.25% last month.

However, a resurgence in the U.S. dollar has helped cap gold™s recent gains as tested support above the critical psychological level at $1,300 an ounce.

Source: Kitco News

RELATED NEWS

Gold To Top $1,300 In Next 3 Months, Rise 10% In 2019 - Goldman Sachs
Monday, 14 January 2019 22:00 WIB

Emas akan terus bersinar sebagai aset safe-haven dengan harga terdorong ke atas $ 1.300 per ons dalam tiga bulan ke depan, menurut perusahaan investasi raksasa Goldman Sachs. Dalam sebuah catatan kepada klien, Jeff Currie, kepala penelitian komoditas global di bank, mengatakan ia menaikkan perkiraa...

Outlook 2019: The Most Bullish Views So Far
Monday, 7 January 2019 11:30 WIB

Para bulls emas kembali. Setelah setahun melihat harga emas lebih lemah, investor dan analis sama-sama mengadopsi optimisme baru untuk tahun baru. Meskipun sentimen dalam seri Outlook 2019 kami telah bervariasi sejauh ini, tidak dapat disangkal bahwa beberapa ahli dogmatis berada di kamp "bull". Be...

Gold Will Rally 22% In 2019, Outperform Everything
Monday, 31 December 2018 22:40 WIB

2019 akan melihat awal siklus bull baru untuk emas dan mendorong logam hingga level $ 1.500 per ounce, kata E.B. Tucker, direktur Metalla Royalty & Streaming. œUntuk menghasilkan banyak uang di pasar ini, Anda harus melihat siklusnya. Tidak ada yang berubah. Kita telah memiliki tiga siklus be...

CPM Group Sees Gold Averaging Near $1,300/Oz In 2019
Monday, 17 December 2018 21:58 WIB

CPM Group melihat harga emas untuk naik tahun depan seiring Federal Reserve memperlambat laju kenaikan suku bunga AS, namun konsultan itu tidak mengharapkan logam kuning untuk lari lebih jauh ke atas karena ekonomi akan tetap kuat. CPM Group melihat emas untuk bergerak ke level $ 1.300 per ons pada...

Wall St., Main St. Expect Gold To Keep Shining
Monday, 10 December 2018 13:04 WIB

Wall Street dan Main Street keduanya melihat emas untuk membangun pergerakan minggu lalu untuk bergerak lebih tinggi selama minggu depan, berdasarkan survei emas Kitco News. Pengamat memperkirakan laporan yang lebih lemah dari perkiraan pada payroll nonfarm AS akan terus menawarkan dukungan kepada ...

ANOTHER NEWS
Hong Kong, Shanghai Stocks End Week With Gains
Saturday, 19 January 2019 05:20 WIB Hong Kong stocks finished another healthy week on a positive note Friday as investors cheered a report that the US is considering lifting Chinese tariffs in a bid to hammer out a trade deal between the world's top two economies. The Hang Seng...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.