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Gold Is 'Best Hedge' Against $16 Trillion Of Bonds With A Negative Yield: Pepperstone

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Gold stands to benefit the most from the record-high negative yielding debt, which is now at $16 trillion, according to Pepperstone. “The U.S. 10-year Treasury has traded with a lower yield-to-maturity than that of the shorter-term U.S. 2-year Treasury has fully caught the attention of all market participants. As has the bid in the U.S. 30-year Treasury, which is currently trading below 2% - a new record low, with the hunt for (quality) bonds, with any positive ‘real’ yield rolling on like a juggernaut,” says Pepperstone head of research Chris Weston. Gold is a natural hedge against these bond troubles. "Gold, as usual, is the net beneficiary of these moves in yield, and the yellow metal has resumed its bull trend. The fact we now have $16t of bonds with a negative yield is driving further flows…it is the best hedge, or offset, against negative-yielding assets we have,” Weston says. 

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Precious Metals' Rally Is Helping Mining Stocks - SP Angel 

Thursday August 15, 2019 09:00

The bullish momentum behind the precious metals market is boosting mining stocks, says SP Angel analyst John Meyer. “As the precious metal surges, global miners’ stocks are tracking. In Sydney, Newcrest Mining Ltd., Australia’s top producer, is up 69% this year, while smaller rival Evolution Mining Ltd. has jumped 42%. Elsewhere, heavyweights Newmont Goldcorp Corp. and Barrick Gold Corp. have gained ground,” he writes. The near-term future also continues to look supportive for precious metals. “Rising geopolitical tensions are … supporting gold, with the flare-up in anti-government protests in Hong Kong have raised the specter of possible intervention by the Chinese military and, in the Middle East, fraught relations between Iran and the U.S. Investors are also tracking Brexit developments in Europe,” Meyer states.

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Weakening Equity Markets Keep The ‘Gold Bug Alive’: TD Securities 

Thursday August 15, 2019 09:00

Gold and silver prices are supported by the weakening of equity markets, which is keeping the bulls in control of the price action, according to TD Securities. “Amid the carnage in equity markets yesterday, gold and silver performed well as a hedge against weakening stock prices,” strategists at TD Securities said. This additional demand for safe havens in times of uncertainty is helping the precious metals sector. “Considering that safe assets are in short supply, treasuries have been on a tear with the US 30y yield printing new record lows, with gold and silver benefiting from some spillover demand for safe havens,” the strategists write. 

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