There are two Charts, the know since the beginning of June only one direction: straight to the top. The first is the price of gold and the volume of bonds with a negative yield. The Central banks are doing with their purchase programmes, the courses of government and corporate bonds to the top and push the yields lower and lower. Investors in the state bonds will be used only to a very limited extent as a safe haven, because you have to pay for the title more than you get back at the end.
This is a reason why the price of gold is so strong in the past few weeks has increased. In times of negative interest rates, the Status of a safe haven, the precious metal more and more. There are many signs currently that the development can continue. Because the Bank of England has given a very cautious Outlook and further support signals.
The yield on ten-year British bonds are at record lows and only slightly above zero percent. The longer the Corona-will not solve the crisis, the longer the Central banks will intervene in the bond market and the returns press. This reinforces Gold as a crisis currency.Updated Date: 06 August 2020, 11:19