The US Treasury 10-year bond notes have officially fallen to a lower yield rate than the 3-month bond notes – the first inversion between these particular bonds since 2007.
The fiscal anomaly is usually an early indicator of recession, and last Friday also say the 3-year bond notes invert against 1-year bonds, with the latter yielding 2.46% compared to only 2.26% for the 3-year bonds.
India could have no need for imported physical gold within the next five years according to Rajesh Khosla, Managing Director of MMTC-PAMP.
Speaking at the 6th India International Bullion summit, Khosla said India would stop importing gold within five years.
The Office for Budget Responsibility downgraded its growth forecast for 2019 yesterday from 1.6% to 1.2%, in line with the Chancellor’s Spring Statement.
The OBR pointed to the global slowdown and a degree of knock-on effect from Brexit as causes for the economic slowdown but highlighted a much better performance over the next five years.
The price of gold has risen to £997.75 per ounce – up from £977.89 yesterday – following news from the European Central Bank that the Eurozone will experience even weaker growth this year.
Yesterday the European Central Bank announced that they were cutting their growth forecast for the Eurozone in 2019, with the ECB president Mario Draghi stating that there would be no increases in interest rates this year and that the ECB would reintroduce cheap loans for banking institutions as a stimulus package for the continent.
The UK economy faces recession in the event of a no-deal Brexit happening this year according to the Organisation for Economic Co-operation and Development.
The OECD has downgraded the UK’s growth for 2019 to just 0.8% (down from 1.4%), at the same time that IHS Markit has reported confidence levels have hit the lowest since both the Brexit referendum result in 2016 and the financial crisis in 2008/09.
The US Dollar is enjoying a surge in value following news that the US and China were finally making progress again in trade talks, with a deal seeming likely this time round.
Romania is the latest country to hit the headlines following a proposed parliamentary bill from the Social Democrat leader Liviu Dragnea and PSD senator Serban Nicolae, who are pushing for the National Bank of Romania to bring the majority of the nation’s gold reserves back to the country from the Bank of England.
