Gold has climbed above the $1,400 mark for the first time since June, re-entering a bull market as disappointing US data and worries over Syria push investors into safe havens.
Emerging market currencies hit fresh lows after minutes from the latest Federal Reserve meeting made the prospect of tapering this year all but a certainty.
The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.
The sharp rally in credit markets following the sell-off caused by the Federal Reserve's tapering talks was a surprise and a cause for concern for Iain Buckle, fixed income fund manager at Kames Capital.
Central bankers are backing themselves into a corner in their attempts to fine-tune unorthodox monetary policies, according to Troy Asset Management's Sebastian Lyon.