lochaz-index wrote:Ceinz wrote:Ceinz wrote:T-Bag wrote:How far is this Gold rally......seems too steep of a climb....trying to rationalise trump-economics
Looks overdone.
Gold bulls winning. $1700 approaching soon.
Fear trade. USD on a tear too. Negative correlation between gold and USD broken. Yields tanking with Greece 10 yr at sub 1%. Japan and Europe flirting with recession. If dollar index continues on the same trajectory (if the fear persists) there will be alot of pain for EM and FM in short order. Ugly doesn't begin to describe it.
We hope gold hits 1700 USD and beyond.These advanced nations central banks with their money printing Quantitative Easing and Repurchase Agreements will result in massive devaluations of fiat currencies against gold.USD strong and inevitable Dollar Index will hit 100 and beyond as the fear trade into USD and US based assets like stocks and bonds continue due to coronavirus.US bond yield curve has inverted yet again with the 1 month bill yielding 1.556% vs 10 year yielding 1.475% as I write this.Totally nuts that short dated treasuries yield more than long dated ones but its the nature of Western markets and such yield curve inversions have a 100% track record of predicting recessions.Bond yields in lots of Eurozone countries like Germany and Switzerland plus Japan have negative yield making even more investors flock into USD and US assets to flee the abnormality of negative yielding treasuries.
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money