Commodities | Rates | US
In this podcast, Jeff Snider, Head of Global Research at Alhambra, discusses how interest rates are currently driving gold prices up – its behaviour is similar to what we see in global bond markets. He explains that while negative bond yields make little sense to an ordinary investor, for many institutions those assets are a balance sheet tool and can have utility in managing liquidity risk (i.e. they consider it as an insurance policy). The opportunity cost of holding such bonds is liquidity premium that banks are willing to bear…
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