Ben Bernanke, the chairman of the Federal Reserve, has said he does not understand gold prices or why investors hold it during certain economic environments.
Chairman Ben Bernanke tried to reassure markets the Federal Reserve would not step away from supporting a weak economy in his testimony to US Congress yesterday.
Legal & General Investment Management's (LGIM) Richard Hodges has bought back into gilts, arguing ultra-low government bond yields are here to stay despite the recent market sell-off.
Federal Reserve chairman Ben Bernanke last night moved to quell fears there will be a quick exit from QE in the coming months, arguing the US economy is not yet in a strong enough position to halt stimulus measures.
The heavy sell-off in the US treasury market over the past two months could force the Fed to postpone its plans to begin reducing its asset purchase programme, according to Henderson's John Pattullo.
The price of gold has continued its decline, falling below the $1,200 mark on Thursday for the first time since August 2010.
Mike Riddell, bond fund manager at M&G, has warned if emerging market debt outflows continue at their current pace or worsen, the effect on the asset class is likely to be "cataclysmic".