gold, page-103805

1812 usd fails to hold

-  as fed handouts overnight with cheap cash explode to hit a new record in terms of cheap overnight loans required and the number of participants needing cheap cash to avoid commercial Markets and markets functioning

so gold hedge probably not as desired with this amount - a new record there for the taking

old record was 1.693 trillion

Broke yesterday at 1.704 trillion

bang

overnight 1.758 trillion-

clearly a lot of demand for cash- remember couple years ago market cratered into Xmas as loans in the two day repo market- loans from the lender of last resort went above 40-50 bln

couple of years on basically and the banks are taking full advantage of the ultra cheap emergency window

1.758 trillion -

if this facility was not on available rates on loans would be ultra painful - doing whatever it takes to keep a lid on rates and the markets functioning - which dampens short term need for hedging imo