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Gold defied another hawkish Fed decision this week, consolidating high in its immediate wake. That was an impressive show of strength, after this extreme Fed tightening cycle hammered gold for a half-year or so. That strong performance reflects gold-futures speculators’ weakening resolve to keep shorting. With their long-side selling exhausted, they have massive mean-reversion buying to do which is super-bullish for gold.
Our research shows gold is a clear complement to equities and broadbased portfolios. A store of wealth and a hedge against systemic risk, gold has historically improved portfolios’ riskadjusted returns, delivered positive returns, and provided liquidity to meet liabilities in times of market stress.
An overview of the promises and pitfalls of DeFi and the broader cryptocurrency industry.
The USA cannot afford to see interest rates have a repeat of the big spike in the late 1970s. If rates go above 10% on a sustained basis, it will be Weimar Republic time. Just getting up to 5% would really REALLY bad, and that is nevertheless what the Federal Reserve seems intent on doing.
More than ninety central banks worldwide are increasing interest rates. Bloomberg predicts that by mid-2023, the global policy rate, calculated as the average of major central banks’ reference rates weighted by GDP, will reach 5.5%.
A recent Bank for International Settlements paper warning of unappreciated risks in foreign exchange markets echoes my earlier warning in an article for Goldmoney published over a month ago describing derivative risks in FX markets.[i] In this article I also show evidence that banks in both the US and Eurozone are reducing the deposit side of their balance...
Dec 16, 2022 - 08:13:56 PST
I won't bury the lede. Core inflation has gone negative for both October and November if one employs non-lagging metrics for Owner's Equivalent Rent [OER], which makes up roughly 40% of core inflation. I previously wrote about the possibility of deflation coming perhaps as soon as early next year.
‘The Fed Is Going to Overdo It’: Financial Markets Finally React to U.S. Central Bank: MWDec 16, 2022 - 08:06:06 PST
Financial markets absorb the Federal Reserve's stridently hawkish interest-rate outlook for 2023, plus fresh signs of a weakening U.S. economy
Stocks Open Eyes, See Fed Pivot Hawkish; ECB Hike into Recession, Start QT; BoE Hike into Recession; SNB Hike, Sell Foreign ...Dec 16, 2022 - 07:37:02 PST
ECB’s assets drop by €800 billion. Mexico hiked too today, way ahead of the Fed, keeps peso from falling against USD.
After tumbling to their lowest since the COVID lockdown collapse, S&P Global's PMI surveys were expected to rebound modestly in preliminary December data this morning. However, the consensus was very wrong as both Services and Manufacturing saw further - and notable - deterioration.
The global energy transition has persisted in 2022 despite ongoing supply chain disruptions and inflationary pressures.
The implications are huge for economies, fiscal and monetary policy, investors and savers everywhere.
As many as 8% of employees may be let go as the Wall Street giant struggles to hit profitability goals.
Two years after selling off its self-driving car business, Uber is rolling out a fleet of delivery robots to replace human Uber Eats drivers in Miami.
The share of adult children who live with their parents has ticked up in recent years. This just in: The parents don’t like it.
More than a third of voters say inflation is causing them major financial strain.
Hawkish ECB Sparks Peripheral Spread Blowout... That The ECB Will Have To BailoutDec 16, 2022 - 06:39:08 PST
Translation: More QE (for peripherals) as they promise more QT and rate-hikes?!
Real Interest rates are the key driver for precious metals. Specifically, declining real interest rates and negative real interest rates drive precious metals higher.
The dollar was little changed on Friday after rising in the previous session, as traders analysed a raft of central bank rate hikes and grappled with the prospect that borrowing costs still have a way to climb.
U.S. Senate Passes Record $858 Billion Defense Act, Sending Bill to BidenDec 16, 2022 - 05:48:35 PST
The U.S. Senate passed legislation on Thursday authorizing a record $858 billion in annual defense spending, $45 billion more than proposed by President Joe Biden, and rescinding the military's COVID vaccine mandate.