In the first quarter, the yellow metal rose 16.5 percent, its best three - month performance since 1986, mostly on fears of negative interest rates and
other global central bank policies.
The FED and
other global central banks seem to be mimicking their scientific betters by keeping rates at a low enough level to prevent the movement of capital from their balance sheets and into the real economy.
Under sovereigns and quasi-sovereigns, we have the bonds issued by Chinese government bonds, the four major policy banks in China, as well as
the other global central bank, like Korean Development Bank.
But so far the path that the Fed and
other global central banks have taken seems prudent to us.