Elena Nikulina

Gold not ready for a new debasement rally, Robin Brooks notes

Gold not ready for a new debasement rally, Robin Brooks notes
Gold trade, yields, RMB outlook

Robin Brooks discussed several global macroeconomic themes on a live stream this morning. He addressed why the recent debasement trade in gold is not likely to take off again, highlighting market conditions.

Brooks also commented on a spike in long-term yields this week, drawing a comparison to the U.K.'s "Liz Truss" moment. In addition, he suggested that China is unlikely to ever allow the RMB to appreciate significantly.

Brooks has focused on currency pressures in recent commentary. He observed the yen climbing toward 160 against the dollar and linked the move to Japan's high public debt. In a separate note, he discussed how the Bank of Japan’s bond purchases have undermined the impact of official FX intervention.

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