Global Stocks and Bonds Fall Sharply – Gold Consolidates After Two Weeks Of Gains

Global stocks and bonds fell the most since the Brexit panic today as recently dormant volatility came back with a vengeance.  There are deepening concerns that global central banks’ ultra loose monetary policies have been ineffectual and may indeed be creating asset bubbles in stock, bond and indeed property markets internationally.

Source: Bloomberg

European stocks fell sharply with the Stoxx Europe 600 shed 1.8% by late morning and leading European indices down by roughly 2%, on course for their biggest losses since June.

In Asia,  Hong Kong’s Hang Seng Index fell 3.4% in its worst day since February. Stock markets in Shanghai, Japan and Australia all closed with losses of around 2%.

U.S. stock futures pointed to a 0.8% opening loss for the S&P 500 after on Friday, it saw its biggest daily drop since the U.K. referendum.

Bonds also came under selling pressure with the yield on German Bunds rising above zero to 0.04 percent, their highest since Britain’s Brexit vote in late June. The rise in lower-rated euro zone countries’ yields was even sharper.

“Super Mario’s” euro printing debt monetisation has artificially suppressed yields in recent years. The 10-year Portuguese yield is up 7bp to 3.23 per cent and Italian benchmarks are adding 4bp to 1.30 per cent.

Irish 10-year bonds yield climbed 3 basis points to just 0.52 percent despite Ireland still having a monumental debt burden and recent warnings by the central bank of Ireland that the nation is exposed to “international shocks.”

It smells like the start of a much over due correction in stock and bond markets. The question is whether it is just another correction, the start of bear market or worse, another crash.

Brent crude oil dropped 1.9% to $47.12 a barrel and base metal prices retreated, weighing on shares of energy and mining companies which were some of the largest losers on the FTSE.

Gold performed relatively well despite the rout in stock and bond markets, however silver fell 1.4%.

Gold was just $2.40 lower at $1326.40/oz and was consolidating after the gains of last week when gold rose 0.25% from $1324/oz to $1328.80/oz. Indeed, it was gold’s second consecutive weekly higher close which is bullish from a technical perspective. Markets being sentiment and momentum driven this could mean the recent correction is over as technical driven traders are likely to take signal from this and go long gold.

Bloomberg warned that a selloff in fixed income is showing signs of snowballing into a global market rout. This bodes well for gold in the coming months and underlines the importance of being diversified and having an allocation to physical gold.

Gold and Silver Bullion – News and Commentary

Global stocks, bonds suffer central bank anxiety attack (Reuters)

Europe Tumbles as Global Markets Selloff Continues (Bloomberg)

Suffering from pneumonia, Clinton falls ill at 9/11 memorial, cancels California trip (Reuters)

Gold slips on U.S. Fed rate views (Reuters)

Gold Dips from 3-Week High; US Mint Bullion Coin Sales Rise (Coin News)

Anti-gold wealth manager buys gold for the first time (CNBC)

U.S. Rate Hike Won’t Spoil Appetite for Gold, State Street Says (Bloomberg)

Venezuela: how the socialist paradise turned into debt and hyperinflation hell (Telegraph)

London’s million-pound homes hit hardest by Brexit (Telegraph)

Could This Bull Market End Up Rivaling the Tech Bubble? (Financial Sense )

Gold Prices (LBMA AM)

12 Sep: USD 1,327.50, GBP 1,000.80 & EUR 1,182.54 per ounce
09 Sep: USD 1,335.65, GBP 1,004.68 & EUR 1,184.86 per ounce
08 Sep: USD 1,348.00, GBP 1,009.11 & EUR 1,195.81 per ounce
07 Sep: USD 1,348.75, GBP 1,008.60 & EUR 1,199.85 per ounce
06 Sep: USD 1,330.05, GBP 997.94 & EUR 1,191.46 per ounce
05 Sep: USD 1,328.30, GBP 996.23 & EUR 1,189.49 per ounce
02 Sep: USD 1,311.50, GBP 987.95 & EUR 1,172.74 per ounce

Silver Prices (LBMA)

12 Sep: USD 18.72, GBP 14.11 & EUR 16.68 per ounce
09 Sep: USD 19.41, GBP 14.58 & EUR 17.23 per ounce
08 Sep: USD 19.93, GBP 14.90 & EUR 17.65 per ounce
07 Sep: USD 19.92, GBP 14.89 & EUR 17.71 per ounce
06 Sep: USD 19.60, GBP 14.70 & EUR 17.55 per ounce
05 Sep: USD 19.46, GBP 14.60 & EUR 17.43 per ounce
02 Sep: USD 18.75, GBP 14.15 & EUR 16.76 per ounce


Recent Market Updates

– Gold, Silver, Blockchain and Fintech – Solutions To Negative Rates, Bail-ins, Cash Confiscations and Cashless Society
– Jan Skoyles Appointed Research Executive At GoldCore
– Silver Bullion Surges 3.5% To Over $20/oz
– Ireland “Especially Exposed” To “International Shocks” Warns Central Bank
– Deutsche Bank Tries To Explain Failure To Deliver Physical Gold
– Physical Gold Delivery Failure By German Banks
– Avoid Paper Gold – “Gold Delivery” Refused By Gold Exchange Traded Commodity
– Debt Bubble in Ireland and Globally Sees Wealthy Diversify Into Gold
– “Why Case Against Gold Is Wrong” – James Rickards
– Obama To Leave $20 Trillion Debt Crisis For Clinton Or Trump
– Gold Bullion Averages Biggest Seasonal Gains in September Over Past 20 Years
– Gold Futures See Massive $1.5 Billion “Non Profit” Liquidation In “One Minute”
– Jim Grant Is “Very Bullish On Gold”

Mark O'Byrne

Also on news-goldcore-com

Videos

Will Silver Prices Go Up to $300?

Brent Johnson Interview-The Dollar Milkshake Theory Explained

David Morgan Silver Guru – What’s going on with silver?

Blog posts

More energy blows are dealt to Europe, causing a cold chill to be even colder

When people ask why they should invest in gold or buy silver coins, we often explain that they should do so because they are a form of insurance. Many of us are taking steps right now to protect ourselves from the impact of inflation on our day-to-day spending, others are trying to manage the increase […]

READ MORE

Will Silver Prices Go Up to $300?

This week’s guest is so bullish on silver that he’s even written a best-selling book ‘The Great Silver Bull’ where he takes an in-depth look at why silver will outperform gold once again and even go as high as $300 an ounce. Author and investments editor Peter Krauth joins Dave Russell on GoldCore TV to […]

READ MORE

Brent Johnson Interview-The Dollar Milkshake Theory Explained

“It’s the dollar strength, which brings the system down.” This week GoldCore’s Dave Russell welcomes Brent Johnson of Santiago Capital onto GoldCore TV. Brent Johnson is the CEO and founder of Santiago Capital and the man behind the Dollar Milkshake Theory. Dave’s conversation with Brent is well-worth watching as they cover US dollar strength, if […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Will Silver Prices Go Up to $300?

Brent Johnson Interview-The Dollar Milkshake Theory Explained

David Morgan Silver Guru – What’s going on with silver?

Blog posts

More energy blows are dealt to Europe, causing a cold chill to be even colder

When people ask why they should invest in gold or buy silver coins, we often explain that they should do so because they are a form of insurance. Many of us are taking steps right now to protect ourselves from the impact of inflation on our day-to-day spending, others are trying to manage the increase […]

READ MORE

Will Silver Prices Go Up to $300?

This week’s guest is so bullish on silver that he’s even written a best-selling book ‘The Great Silver Bull’ where he takes an in-depth look at why silver will outperform gold once again and even go as high as $300 an ounce. Author and investments editor Peter Krauth joins Dave Russell on GoldCore TV to […]

READ MORE

Brent Johnson Interview-The Dollar Milkshake Theory Explained

“It’s the dollar strength, which brings the system down.” This week GoldCore’s Dave Russell welcomes Brent Johnson of Santiago Capital onto GoldCore TV. Brent Johnson is the CEO and founder of Santiago Capital and the man behind the Dollar Milkshake Theory. Dave’s conversation with Brent is well-worth watching as they cover US dollar strength, if […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE