Global macro overview for 08/03/2016:
The Bank of International Settlements head economist Claudio Borio remarks in the latest BIS published report has warned about the coming "perfect storm", which is a situation that is way worse than financial crisis of 2008. The main arguments of Borio were related to unsustainable debt problems that were not solved since the last crisis. He indicates, that the world central banks have run out of measures that could stimulate the economy. According to Borio, the most important problem is overwhelming debts of developing markets and their economies. At the end, he stated that the negative interest rates might be dangerous in longer terms and will not bring any stimulus to the economy. The concussion for the market participant is rather clear: the global slowdown looks more serious than it appears and it might be the time to relocate assets from less riskier to more stable and safe.
The safe heaven asset is gold (and dollar, Swiss franc, Japanese yen and silver), so let's take a look at the technical picture of it in the daily time frame. It recently broke through the resistance at the level of 1263 and bulls are trying to test the next resistance at the level of 1307.
