Gold

A great day for safe-haven assets

Gold bars stacked on top of each other
Photo: artpartner-images/Getty Images

The stock market rebounded Wednesday, with major U.S. indexes finishing the day slightly higher or little moved from where they opened, but prices on safe-haven assets like gold, the Japanese yen and U.S. government debt continued to rise.

What happened: Gold prices rose to a 6-year high, above $1,500 per troy ounce, while the yen broke through 106 per dollar, nearing a 5-month high, and U.S. Treasury prices rose, taking down yields on the benchmark 10-year note below 1.6% in early trading.

Central banks want more gold, fewer dollars

Illustration: Rebecca Zisser/Axios

Led by Russia and China, the world is accelerating its move away from the U.S. dollar. But rather than increasing buys of other currencies, more of the world's financial authorities are buying gold.

Driving the news: Central banks purchased a record 374.1 tons — worth $15.7 billion — of gold in the first half of the year, the largest first-half increase in the 19-year history of the World Gold Council's (WGC) data.