Bond Bubble Warning From BIS
from Gold Money
Hope that American politicians may be able to successfully navigate their way through the fiscal cliff rapids, and suggestions that the Federal Reserve may announce an extension of its bond-buying programme are stimulating bids for growth assets. The Dollar Index has fallen just below 80.00, with the euro rising above $1.30. Despite the increasing political uncertainty in Rome – with rumours abound that Silvio Berlusconi is preparing to ride to his country’s “rescue” on a wave of populist discontent with Brussels, the euro, and Mario Monti-style technocrats – Italian bond yields are down 20 basis points from Monday’s high.
Gold and silver continue to consolidate. Both had reasonable days yesterday, with gold eking out some more space above an important support level at $1,700. Silver is holding above $33 – a resistance point for the bulls in the recent past. Silver looks like it’s coiling, ready for a big move up to test the $50 nominal record again next year.
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2012-12-12 10:22:00
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