Neil Hume questions why recessionary indicators such as trade tensions and falling bond yields have not raised gold prices (Tail Risk, May 30). Gold is a hedge against inflation. Bonds are a hedge against deflation. Flat gold prices and falling bond yields indicate that investors are focused on deflation. They are less concerned that tariffs will raise prices than that the trade war will threaten global growth.
Signs that Investors Are Focused on Deflation
Willem THORBECKE
Senior Fellow, RIETI
May 31, 2019 Financial Times
August 27, 2019
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