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USA rate hike in June instead of a pause being suggested. Gold edges down and CEY following. $1960 gold probably gives CEY at 103p. Gold options expiry date is 25th May and coincides with delays or whatever of USA debt ceiling talks.
I am starting to think that for POG, rate rise and bank failures is more beneficial than, pausing or monetary easing..
Lucky
I think the POG is a result of a (complete?) loss of faith in the ability of the Central or Reserve Banks to be able to manage outcomes of the economy. They have demonstrated almost consistently (!?) an inability to be able to provide leadership to the financial and broader communities. The zero interest rates, for toooo long started the ridiulous management initiatives of recent, and now we have too many interest hikes for too long, and certainly in Australia we are heading into recession becuase of the Reserve Banks stupidity or incompetence or both, with the only question being how bad it is going to be, and how much of the population it is going to affect. The stupidity has even been noticed and then acted upon by the government, such that there has been a stripping of its powers (LOL) https://www.sbs.com.au/news/article/the-rba-has-been-given-its-biggest-overhaul-in-a-generation-what-does-this-actually-mean/8gy4dx86d
It is really quite ridiculous how they have been able to get away with such nonsense for so long. Reminds me of the Emperors New Clothes, and how the old stories ring true.
I will take my medicine now, and be able to laugh tomorrow!
best to all
the Gnome
Basel 3 may also be helping to support POG.
Goldgnome
So many points in your post can be interpreted and elaborated further, that talking about economies and finance, could easily become a philosophical conversation.
For example when you mention "Central or Reserve Banks to be able to manage outcomes of the economy"
this concept can have many interpretation all to suite specific circumstance ore agenda of each central bank...
becoming many forces pulling in different directions..
Again on the subject or "zero interest rate" imo the best thing that happened to humanity after wine lol...
only problem is when central banks play with rates up or down, therefore not allowing the natural course of events and market forces, where too high inflation would automatically kill demand without the need to rise rates.....?!
The western financial system and the concept of interest rate is financial mafia. It has been set up to allow corruption, and control the masses, by creating huge private debit and slavery on debit repayment.
Of course the US doesn't have to repay the debit the have the U$D, and if that lose credibility they can always start a war, of a new pandemic, or something else...
For example what about assassinating Putin or XI, that would be a nice reset of the economies, when thigs start to get too overbought.....
No worries mate we are just passengers struggling to make a return on investments, when the one in the know have already booked handsome returns for generation to come..
And so of recent, it turn out that blue chips techs and growth stock was the place to be.
Unfortunately my hate for anything that is USA stopped me from buying NVIDIA at 120 just few moths ago.
Not easy to make money for those trying politically and morally correct...whatever that may mean.
Back on POG now that US inflation has come down from recent high, I see the Fed in a position of strength free to chose the course of rate rise. As long as no more banks go down....they will have all the time they what to dose rates up or down or pausing, and therefore directly and effectively control the economy, but more importantly control the market for the benefit of their paymasters.
If you thing the Fed has been put in place to the benefit of people and the US economy , please allow me to call you naïve.
The Fed only act directly for the people when there is a danger of riot in the street, that is if unemployment would be at 15/20% and maybe high inflation....we are not going to get there by a mile...
POG will be always slave of the Fed and the media circus, and possibly blue chip techs will keep growing to infinity.
NVIDIA now has a PE of 180 and is neat all time high.....unbelievable.
Remind me of a multi years cycle for growth stock started post 2009 credit crunch, but from a higher starting point.
Love and peace.
Another example why we are taken by fool from the Fed and its media circus, even if some commentator may be genuinely missing the point is the below article...
https://www.investing.com/news/commodities-news/gold-could-go-to-2200-dont-be-fooled-by-selloff-on-us-debt-deal--ubs-3085933
Now... recently the media has been feeding news that a no deal on US debit ceiling, would be beneficiary to POG and a disaster for U$D.
REALLY? How have we come to this?
Does it mean that more the USA increases its debit and better is for the U$D?
Anyone can understand how easy for the Fed to manipulate asset prices, with this economic dynamic in place.