Gold is the currency of last resort Finally, markets are also growing increasingly concerned about a possible return of inflation now that the initial deflationary shock from the pandemic has passed. Beyond the already massive debt build-ups around the world, we see risks of politically-driven inflationary policies to address rising social needs. Such policies would
Lot’s of excitement over this: As I have noted many times, BTC and gold share an investment narrative insofar as both are seen as hedges against USD debasement. Some have recently been plumping for BTC to overtake gold. Has it? The answer is no and, for what’s it’s worth, I don’t think it will. BTC
This time RBC: For some time we have been calling out not just the 2020 US presidential election itself as a potential source of uncertainty for gold, but rather that potentially volatile aftermath and uncertainty following it could prove a source of volatility and/or upwards price momentum for gold in our view. In fact, in
Via Doubleline: If launched, central bank digital currencies (CBDCs), as I have recently warned, will put at risk the independence of monetary policy and what little is left of fiscal discipline within their borders of circulation.1 Central banks are not stopping at the replacement of money as we have known it. In conjunction with their developmental
Via Sprott: The current pullback in the precious metals sector is a buying opportunity. Since trading at a closing high of $2,064 an ounce on August 6, gold bullion has declined 8.34% as of this writing. Gold mining shares have followed suit, declining 9.26% since the August high. It is possible that gold and related
Raoul Pal asks the question: Bitcoin is eating the world… It has become a supermassive black hole that is sucking in everything around it and destroying it. This narrative is only going to grow over the next 18 months. You see, gold is breaking down versus bitcoin…and gold investors will flip to BTC pic.twitter.com/ox7KRY5VRo —
Via Credit Agricole: After correcting lower towards the end of September, precious metals such as gold have been stabilising with our outlook being for gradual upside in the coming few quarters. While we expect gold to end the year closer to 1940 (USD/oz), the yellow metal should advance well above 2000 in the years
Via ANZ: If global growth concerns continue to push up the USD, like we have seen this week, we could see some near-term headwinds for the precious metal Importantly though, if U.S. growth concerns result in significant policy adjustments by the Fed to help the economy, such as negative interest rates or even monetary financing,
With gold resuming its bid Friday night let’s take a look at where the miners as a sector are versus the underlying price. On a purely one-to-one basis, the recent correction looks a little overdone if you think we’re in a bull market: A better way to look at it is using an index chart:
DXY roared back last night: The Australian dollar was bashed: Gold was creamed: WTI is bid by a robot: Metals did OK: Miners not: Nor EM stocks: Or junk: Yields lifted: And stocks fell: The culprit was Fed minutes which simply weren’t dovish enough: Participants observed that uncertainty surrounding the economic outlook remained very elevated, with
Via Goldman: Momentum-based trading systems have been popular for decades, given their low correlation with traditional benchmark returns and, therefore, their potential for generating alpha. The strategies tend to have common components, including set rules for entering and exiting positions. Although there are a variety of methods employed to produce a trade signal, many rely
Thoughts @elonmusk pic.twitter.com/w4a4Mjs0Cy — Dave Portnoy (@stoolpresidente) August 13, 2020 Lol. This is what investment has become. A couple of wankers making shit up to promote a worthless uncurrency with stunning regulatory risk. Gold is “boomer”, apparently. One should always be wary of becoming set in one’s ways but come on.
by Chris Becker Not a fun night for a gold or silver bug with both precious metals slammed down hard after having a huge run up past historic resistance levels and making new record highs. Silver dropped over 10%, clearing through tentative support at the $28 level after a double top pattern formed on the
Via Bloomie: With no imminent end to collapsing real yields – which just hit a new record low -1.10%, the side effects of financial repression warn of stagflation, asset bubbles and policy impotence. Fresh lows for U.S. 10-year real yields this week show a trap door opened by growing economic angst, climbing inflation expectations and
A couple of charts today make the point. Real interest rates have room to fall further: Gold ETF flows are still very small: AUM proportions dedicated to gold are still WAY down versus previous peaks: Probably the best chart of all, DXY is still very high: The lows of the GFC period are 24%
A couple of gold bugs talking it up: Both of these blokes are from the Austrian economic school so you need to be careful of their more extreme price projections. I don’t see any return of the gold standard nor erosion of the USD as the global reserve. But I can still see gold shooting
Via Karen Moley yesterday: Lowe’s carefully reasoned outlook for inflation puts him at distinct odds with the growing number of analysts who believe the combination of huge monetary stimulus programs launched by central banks around the world in tandem with massive government spending will light the fuse on inflation. Fears that the world could experience
DXY was down last night as EUR popped: The Australian dollar caught the bid again: As gold went wow: WTI is pressing higher but Brent is stuck fast: Metals MOAR: Big miners were soft: EMs stocks pushed for breakout: With junk: As US yields crumbled: US stocks piled it on. Europe is crushed by EUR
Australian dollar gold is at all-time highs this morning: Australian gold equities are matching the bull market: But note that equities usually very much overshoot the underlying metal before the bull market is done. Given I see gold going to $3000 at least this cycle, the prospects for the miners are excellent. That said, do
From Shane Oliver at AMP comes a good wrap of gold and the AUD: Introduction The price of gold has now broken out to a record high and the Australian dollar has risen 30% from its coronavirus panic low in March and broken above $US0.70. What’s driving this and what does it mean for investors?
DXY finally bounced a little: The Australian dollar still red hot: Gold turned volatile as it rockets higher: Oil is still a yawn: Dirt was mixed: Miners fell: EM stocks too: Junk eased: Yields keep falling: Nasdaq looks toppy as S&P fights for support. Europe is stuffed by its rising currency: Westpac has the wrap:
The yoking of Bitcoin and gold is one of the strangest phenomena in contemporary markets. On the one hand, gold is the ultimate safe-haven asset. On the other, BTC is the least so. One is eminently importable. The other absurdly the opposite. One is pure physical reassurance backed by thousands of years of human history.
The AUD is bid this morning as DXY sinks: Bonds remain pancaked: Stocks are up a little: Big Iron is struggling: Big Gas is down: Big Gold is marching as the metal hit an all-time high this morning. Macquarie’s stupid Friday downgrade now forgotten: Big Banks are sinking again: MB Fund has been buying gold
Via JPM: According to JPMorgan’s Nikolas Panigirtzoglou, retail investors appear to have been mostly behind the recent rally (although the Robinhood army has yet to fully engage), and indeed the buying of physical gold ETFs, a major vehicle used by retail investors, rose steeply in recent weeks, making this year already the strongest on record with still
And up she goes! Via ZH: For SLV, the number of RH users holding the ETF has surged from around 15,000 to 20,000 in the last few days… … making it the 16th most popular pick on Robinhood as of the past 24 hours. In GLD, we have seen less of a sudden surge so
And running. The Lunatic RBA’s AUD thermal is still in play: Yields dead: XJO is flat: Big Iron is soft: Big Oil as well, barring the evil Santos: Big Gold is running after solid results from NCM and EVN, not to mention the incipient gold bull market: Big Banks have faded the DoleHider bounce as
The AUD is still bubbling away this morning despite Victoria’s virus calamity (thanks RBA): Bonds are dead as the Dodo: Stocks have backed away from resistance but the chart is bullish: Gold is the story de jour. Up she rockets: Big Iron has been sucked down by an ordinary BHP print: Big Gas is OK:
by Chris Becker With yet another industrialised nation announcing a record government deficit (Canada this time with $300bn, close to our own $240bn), and central banks furiously papering up over massive cracks in the global economy in the wake of the coronavirus pandemic, it’s no wonder that the Minsky Metal is on a tear, almost
The Australian dollar is still trying to push higher this morning. The chart is still bearish: Bonds are stable: Stocks are struggling despite another drunken night on Wall St: Big Iron is OK: Big Gas is struggling: Most of Big Gold is coiled in an ascending triangle pattern looking for break out: Big Banks are
DXY resumed falls last night: The Australian dollar was pretty soft all things considered: Gold finally broke out to new closing high: Oil struggled: And dirt: Miners were strong: EM stocks too: And junk: Bonds were soft: The great bubble inflated some more: Westpac has the wrap: Event Wrap US Administration spokesmen continued to discuss the
