While gold is near annual lows (having fallen by around 5%), real interest rates are near their highs in many major markets. This is not a complete coincidence, provided the correlation between gold and real interest rates (income after accounting for inflation), which we covered earlier. Charts show that gold is lagging behind a little from rising interest rates, which under normal circumstances presses on quotations of gold (as the relationship between gold and interest rates reverse). This remains true for those who believe that interest rates will stay high, that the most dangerous for corrections of gold.Bond purchases ECB back to the old trend. Data that tell us about how the ECB was busy last week, showed that during this time he bought the bonds for 146 million euros, which coincides with the trend of purchases observed at the beginning of the year. ECB desperately wants to make a purchase to be zero, but current levels of spreads and a lack of acceptable alternatives says that it is not soon.
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