Markets have been acting ‘super weird’ lately. Just look at gold prices vs. the dollar and bonds

The financial markets were already an extraordinary year, but the recent procedures that occurred recently were particularly strange, according to Robin Brooks, an older colleague at the Brookings Institute.

In a alternative publication on Tuesday, “Super Strange Markets Since Jackson Hall”, the path of the main assets has followed since the Federal Reserve Chairman Jerome Powell opened the door to evaluate the discounts in a letter at the annual central bank symposium last month.

“You thought this would affect the dollar, raise the S&P 500 and enhance commodity prices in all fields. But this did not happen,” Bruks wrote. “The only thing that was transferred is gold, with a large increase in prices by approximately 10 percent.”

Certainly, the stocks have risen since his position as the benign inflation hypothesis that has wiped the way to reduce interest rates when politicians meet on Tuesday and Wednesday. Gold prices also rose, new levels were placed along the way and closed on Friday at $ 3680.70 an ounce.

But the bond market is spent unexpectedly. Brooks noted that the treasury returns for 30 years did not decrease immediately after Powell’s speech, but it decreased after another report on the bad jobs after two weeks.

He added: “The fact that the return of the treasury for 30 years has not immediately decreased strange and disturbing.” “It took very weak salaries to do so finally.”

In addition, although the dollar index had some rise and landing, he returned to the place it was before Powell’s speech, as Brocks described “not intuitive” because expectations to reduce the federal reserve would decrease.

Meanwhile, Bitcoin was sold after Jackson Hole, but she also returned to the place where she started, although cryptocurrencies generally acted like risk origins in the past and previously gathered on the severed hopes.

“What does all this mean? The recent market movements indicate that gold is the final safe haven,” said Brooks. “Bitcoin proves very volatile and speculative, so – as the political pressure on the escalating of the Federal Reserve – is attracted to the markets to gold.”

Fears of the debt crisis in France and the United Kingdom have increased the revenues of global bonds in recent weeks. I hope in France in France in France in particular hopes that Paris will work on a deficit any time soon.

On Friday evening, Fitch reduced the credit rating of France from AA-to A+, the lowest level ever in the second largest economy in the eurozone, saying that the main shift to financial discipline is unlikely.

Brooks said it is possible that the crisis in France has sent more investors looking for a safe haven towards the dollar, and may explain the reason for the stability of Greenback.