end of another week and looks like gold usd in bull Market after some great swings and high volume tests
Gold aud - 2232 nooooooice
Lots of good information flowing around
I’ll say this - I agree rates have a link to gold but not perfect - and people
Also think gold is correlated to USA dollar- but have a look at the usd over last 4 years- and then have a look where gold has come from - totally opposite to what you would think
The current issue with the rates is global problems with debt and a range of central banks holding all the bonds which has distorted things to absurd levels - all this and the economies in the private sector aren’t really doing it without support
Lots of things don’t go as expected but gold
At present has done what it should imo
Look At cba- lowest rates in oz during the last reporting period yet customers are running into increased trouble and provisions for non performing loans are through the roof compared to previous —- imagine what will happen to their customers or any of the other banks should rates return to anything normal—-there is the answer imo and there in lyes the reason all the bankers a pushing for rate reduction and jawboning hard
Reflate the curve in a reversal, tell everyone everything is fine and watch equities come down as highly indebted companies struggle and everything which is highly leveraged falls
Like 2008/9 gold will once again move higher imo
As they fall then people Move back into bonds - rates go back down- gold does it’s thing
We are more awash with debt now than ever, trade is definitely slowing -
A big issue imo is that as more and more people
Get annoyed and pull their cash out of banks for a punt as rates are low- this stresses banks deposit bases
Feels like a monster house of card to me and now they want to push stimulus again globally - if things are so great why do we need and push fiscal packages?- why are gdp’s so reliant on government spending to look great?
Not sure where gold goes tomorrow but after a decade of global interference in markets, playing with rates- bs about no inflation- distorted statistics—- pushing people to buy equities at monster pe or claiming earnings growth which is reliant on cheap money to buy back - things are getting interesting
Anyhoooooooo
Gold usd and aud finished higher again this week
Who knows what next week brings but I reckon if they re inflate curves and the cost of debt rises many will crumble as slowing trade and slowing cashflow will expose many a business
