Thursday, October 15, 2015

Charting the Markets: Burberry and Bonds Not as Good as Gold - Bloomberg Business

Charting the Markets: Burberry and Bonds Not as Good as Gold - Bloomberg Business: "Gold's winning run has stretched to the longest in eight weeks. When the precious metal sank to a five-year low on Aug. 5, the odds of a U.S rate increase in October were 55 percent. As expectations for higher borrowing costs get pushed back, the prospects for gold have improved and it's rebounded almost 10 percent in two months. Gold is less attractive in a rate-tightening cycle because it doesn't pay interest or dividends, unlike bonds or equities. Momentum is on its side right now. On Wednesday the metal moved above its 200-day moving average for the first time in five months, signaling an uptrend. The commodity's quarterly losing streak now stands at five, the longest since June 1997."



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