Gold and bonds are rallying on Tuesday, as gold continues its excellent start to the year.
Early Tuesday afternoon, gold futures were up 1.5% to $US1,295 an ounce, with the price of gold now up almost $US150 an ounce from its late November low.
On Twitter, CNBC’s Sara Eisen noted that gold is on track for its seventh-straight daily gain, and over this period gold has gained more than 7%, the best streak for the precious metal since 2007.
Also rallying was another “safe haven” asset — US Treasury bonds — as the yield on the 10-year fell to near 1.77% while the 30-year bond was yielding a near-record low of 2.37%.
Stocks were selling off on Tuesday as the market waits for news from the ECB on Thursday as the whether the central bank will embark on a QE program. Oil was also weaker, with West Texas Intermediate crude futures falling about 4% to back near $US47 a barrel after rallying last week for the first time in about two months.
There were also a couple items of less-than-stellar news to make investors nervous on Tuesday, as the IMF slashed its growth outlook for the world again and China last night reported its slowest annual growth rate since 1990.
When its a “risk off” environment, these are the charts we expect to see: gold surging and yields falling.