$Crude Palm Oil Futures(FEB5) (FCPOmain.MY)$ After the Fed c...
$Crude Palm Oil Futures(FEB5) (FCPOmain.MY)$ After the Fed cut interest rates by 50BP:
Bonds have fallen sharply, and the long-term has fallen endlessly
The US dollar index has risen sharply
Gold rallied
This trend is very abnormal, and in terms of correlation, the decline of long-term US bonds is equivalent to the rise of long-term real interest rates, and the US dollar is strongly negatively correlated with gold. In this case, gold has rallied against all these negative factors.
Bonds have fallen sharply, and the long-term has fallen endlessly
The US dollar index has risen sharply
Gold rallied
This trend is very abnormal, and in terms of correlation, the decline of long-term US bonds is equivalent to the rise of long-term real interest rates, and the US dollar is strongly negatively correlated with gold. In this case, gold has rallied against all these negative factors.
Obviously, there is only one reasonable explanation:
Gold follows the logic of future inflation expectations. The market is trading in the second round of inflation next year, and the Fed might even raising interest rates twice in the opposite direction.
If this situation really happens, it is very likely that gold will peak due to the positive factors realization. Industrial products are also constrained by the demand side, but some bulk commodities that have fallen to low levels now, such as agricultural products and soft commodities, will fly to moon.
If this situation really happens, it is very likely that gold will peak due to the positive factors realization. Industrial products are also constrained by the demand side, but some bulk commodities that have fallen to low levels now, such as agricultural products and soft commodities, will fly to moon.
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