Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Out on his daily constitutional, a dog in Poland unexpectedly struck gold, or rather, silver. The dog was being taken for a walk by his owner near the city of Wałbrzych in southwestern Poland when he began digging the soil to get to the bottom of the something unusual his powerful olfactory senses detected. He was rewarded by a jugful of bracteate medieval coins, which are thin, single sided, and were used as currency in the Middle Ages in northern Europe, especially in Germany, Hungary and Poland.
Gold maintains a slight upward bias in its broader sideways range. A break past the $2,070/75 highs would resolve the range higher for a fresh bull trend, strategists at Credit Suisse report.
The LME -- the world’s biggest exchange for industrial metals -- partnered with banks including Goldman Sachs Group Inc and Morgan Stanley in 2017 to launch the contracts. London is one of the two major centers of precious-metals trading, where trillions of dollars in gold, silver and associated derivatives change hands each year. It’s an almost entirely over-the-counter business, dominated by top bullion banks like JPMorgan Chase & Co. and HSBC Holdings.
Apr 22, 2022 - 12:57:04 PDT
The Fed is battling inflation that's sitting at a 41-year high. Gold prices, meanwhile, have outperformed bitcoin so far this year.
More Complicated Than It Looks. The question is not as straight forward as it looks. The gap between spending and income isn't constant.
The U.S. Dollar Index DXY, +0.56% rose almost 0.7% on Friday to 101.25, a level last seen in March 2020 when investors world-wide piled into the greenback during the onset of the COVID-19 pandemic. The dollar is getting a lift from expectations that the Fed is about to start aggressively hiking rates in order to combat inflation, currently at its highest annual rate since 1981.
How to respond: This data presents another huge challenge for central banks as they pull back support for the economy and try to put a lid on the highest inflation in decades.
ECB Rate Hikes Later in Year After Asset Purchases, but We Have To Be Data-DependentApr 22, 2022 - 12:24:47 PDT
The end of bond buying “is very likely to happen in the course of the third quarter with a high probability that it will be early in the quarter if numbers continue to be the way we have seen them,” Lagarde told CNBC in an interview from Washington on Friday. “But we have to be data dependent and we will be sequential.”
Bank of Japan Governor Haruhiko Kuroda said on Friday the central bank should "persistently" continue with its current aggressive monetary easing, despite an expected temporary rise in inflation driven by surging commodity costs. Japan's inflation is expected to rise in the short run, but such a rise consists primarily of...
Treasury’s Yellen: The World Bank & IMF Not Built To Address Multiple & Overlapping Global CrisesApr 22, 2022 - 11:53:52 PDT
Yellen told reporters that both the World Bank and the International Monetary Fund were not designed to handle the multiple global crises they now face, including fallout from Russia's war in Ukraine and the COVID-19 pandemic, and they lack the resources to tackle climate change.
S&P 500 Falls 1% on Friday, Putting It on Track for Third-Straight Losing WeekApr 22, 2022 - 09:08:46 PDT
"Stagflation concerns resurface on the back of real-time signs of a tight labor market and waning business sentiment, coupled with another bounce in 10-year Treasury yields — and all peppered with a deluge of earnings releases," Chris Hussey, a managing director at Goldman Sachs, said in a note.
Peak Balance Sheet: Fed’s Assets Dip to Level of 5 Weeks Ago. End of QE, End of an EraApr 22, 2022 - 08:49:24 PDT
Markets already started to kiss that easy money goodbye.
Those saying we are nearing peak inflation are as wrong as they were when they said it months ago and as wrong as they were when they said “inflation is transitory” a year or more ago.
A 2.6-trillion-euro ($2.8 trillion) gauge of total returns in euro-denominated high-grade debt is down 8.6% since a recent high in August. That’s the steepest peak-to-trough plunge on record, surpassing the slump at the start of the coronavirus pandemic and the global financial crisis more than a decade ago...
Apr 22, 2022 - 08:10:30 PDT
US President Biden went green and signed executive orders on his first day to limit oil and natural gas exploration of Federal lands and offshore (also, killed the Keystone Pipeline), helping to drive up energy prices and food prices. These orders begat inflation (also caused by the massive Covid relief by the Federal government).
Japan Once Celebrated a Cheap Yen. Now, the Worst Currency Crash Is Causing Global Panic: FortuneApr 22, 2022 - 08:02:33 PDT
...it is remarkable nonetheless to see the leader of a country once considered the world's most formidable export juggernaut now appealing for global cooperation in propping its currency up rather than driving it down.
As Yen Craters, Japan Begs US For "Coordinated Currency Intervention", Is Rejected By YellenApr 22, 2022 - 07:53:59 PDT
At the end of March, we warned that the "Yen was At Risk Of "Explosive" Downward Spiral With Kuroda Trapped"...
The Fed faces a real conundrum. Bond yields continue to rise. The only thing that can stop it is a central bank pivot back to rate cuts and quantitative easing. But the Fed needs to raise rates and shrink its balance sheet to fight inflation. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the bond market and Fed's conundrum. He also goes on a little rant about taxes.
Apr 22, 2022 - 06:15:59 PDT
The United States has borrowed $18 trillion from foreigners since the Great Financial Crisis of 2008, a staggering sum that is nearly equal to America’s annual Gross Domestic Product. The notion that the dollar’s dominance in world finance might come to an end was a fringe view only five years ago, when America’s net...
Apr 22, 2022 - 06:12:06 PDT
Buyers’ expectations for US inflation have shot to their highest stage in many years even because the Federal Reserve indicators an aggressive tightening of financial coverage is imminent, underscoring the problem central banks face in convincing markets they will tame runaway worth progress.