A new glow for gold? Gold’s recent upgrade to Tier 1 asset status under Basel III and last year’s record-setting gold purchases by central banks have set the gold bugs buzzing. But so far the gold price has failed to budge. For central banks, gold is a last-resort store of value. For most other investors, gold remains a rather speculative asset class. Our assessment for gold.
The macro perspective
A good start, albeit one with reservations. The slackening pace of economic momemtum over the past several months seems to have had the effect of limiting the scope for a sharper downturn. But can the slowing trend be stopped? Positive news has indeed arrived, from several regions, but unanswered questions remain. Our view regarding economic momentum.
FX market talk
The renminbi finds its way into benchmarks. Renminbi bonds from the world’s second largest debt market are gradually being added to global portfolio benchmarks. A similar development began unfolding a year ago with renminbi-denominated Chinese equities. As portfolios are adjusted, their currency mixes will inevitably change. Our thoughts of the renminbi.