$NVIDIA (NVDA.US)$ After the Fed cut interest rates by 50BP:...
$NVIDIA (NVDA.US)$ 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.
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.
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.
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EZ_money : I don't get it either. I've been saying this for a long time now. this doesn't make sense so I'm going to try to make it make sense.....they are artificially pumping this up on purpose
LuckyLuke : if gold rises so fast that usually doesn't indicates anything good for people
EZ_money LuckyLuke : yes normally. but what if it's just because of BRICs pegging the new currency to gold and central banks buying.
103349305 OP : if its due to Brics.Usd shld weakened .Obviously Brics is one of the catalyst for gold but not for bond n Usd.
LuckyLuke EZ_money : Gold could go up because of coming recession or Middle East matter. Brics all together have not as much gold as US holds and they new currency suppose to be backed up by 40% with gold. If US want to keep a dollar up then they have to pump up gold price as they printed too much papers
EZ_money LuckyLuke : Nobody knows how much gold United States has, it's never been audited and nobody even knows how much is sitting at fort Knox. i wouldn't say that about gold...china has been not only buying it up in the London exchange and the comex, they are buying out mining companies across the world. Russia is gold rich underground. United States anti mining within it's own only a few exist now inside United States. United States had to steal 300 billion worth just recently from Russia. calls it sanctions