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However, Lombard Odier Chief Economist Samy Chaar told CNBC on Monday that his team had sold half of their position in gold. Chaar said that while holding some gold was important in a world where a lot of debt is negative-yielding, the deep negativity of U. S. real interest rates creates some “vulnerability” for gold at the current price levels, since such low rates are not sustainable given the economic outlook.

Spot gold touched an all-time high of $1,943.9275 per ounce during Asian trading hours, as a flare up of diplomatic tensions between the U. S. and China and spikes in coronavirus cases in various major countries sent investors flocking to the traditional safe haven asset.

Despite gold prices hitting record highs early on Monday, disjointed real interest rates in the U. S. mean there is some vulnerability in the precious metal’s current price levels, according to Lombard Odier Private Bank.

However, Lombard Odier Chief Economist Samy Chaar told CNBC on Monday that his team had sold half of their position in gold. Chaar said that while holding some gold was important in a world where a lot of debt is negative-yielding, the deep negativity of U. S. real interest rates creates some “vulnerability” for gold at the current price levels, since such low rates are not sustainable given the economic outlook.