Yang said that while the U.S. economy has been resilient, it might not be able to withstand the global slowing trend. She noted that both China and Europe are seeing weaker economic activity.
She said that this uncertainty is helping gold prices hold long-term support above $1,900 an ounce, and added that although prices can go lower in the near term, it would not take a significant risk-off event to shift the momentum in the precious metal.
"I think gold is holding support at these elevated levels because it is positioning itself for some global macro risk event that may materialize despite the current strength of the U.S. economy," she said.
Yang said that one problem starting to creep back into the marketplace is the potential for another credit risk event as the Federal Reserve's aggressive monetary policies drive bond yields higher. Yang's comments come as U.S. 10-year bond yields push solidly above 4.5% to a fresh 16-year high.
While the current bond market selloff has been reasonably orderly, according to some economists there are growing risks that the bond market will become unanchored as U.S. debt continues to grow.
She said that this uncertainty is helping gold prices hold long-term support above $1,900 an ounce, and added that although prices can go lower in the near term, it would not take a significant risk-off event to shift the momentum in the precious metal.
"I think gold is holding support at these elevated levels because it is positioning itself for some global macro risk event that may materialize despite the current strength of the U.S. economy," she said.
Yang said that one problem starting to creep back into the marketplace is the potential for another credit risk event as the Federal Reserve's aggressive monetary policies drive bond yields higher. Yang's comments come as U.S. 10-year bond yields push solidly above 4.5% to a fresh 16-year high.
While the current bond market selloff has been reasonably orderly, according to some economists there are growing risks that the bond market will become unanchored as U.S. debt continues to grow.
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