“We have always had a position in gold. When you think about the largest central banks in the world, they have all moved to unlimited printing ideology. Monetary policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don’t have a great answer for you other then you should maintain a position.”
So says Hayman Capital’s Kyle Bass. Gold had a decent day yesterday – gaining around $20. The yellow metal needs to climb above $1,600 if we’re to get any kind of serious buying momentum. Silver scrambled back above $28 on the back of gold’s gains, with $30 a tougher resistance point for the bulls. A “sell the rallies” mentality continues to dominate in both metals, however.
The yen is causing ructions in the currency market, with the US dollar close to its strongest level since May 2009 against the yen, following the Bank of Japan firing its “bazooka” last week in an attempt to stimulate the Japanese economy. Trading of Japanese Government Bonds (JGBs) was actually suspended today as prices fell sharply – with investors understandably un-eager to leave themselves exposed to a weakening yen. The FT (subscription required) notes that the country’s bond market is now second only to Greece in terms of volatility.
Read the complete article at GoldMoney here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.