Recession sentiment of the US Economy

J

Jotatcha

With a fall in the GDP figures of the USA for this second quater, i wish to know if this information is enough to speak about the weakening of the US currency.
Looking at this situation, with fear arising from investor, is there possibility that the gold spot might be appreciated to the USD
 
Uncertainty causes Gold to rise, not inflation by itself only.

But nothing uncertain about support turning to resistance:-
! XAUUSD.png


Although I think there is a good chance new highs are made above resistance up to 1800.xx area
 
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So if i am meant to get a clue, rising inflation definitely do not push investor towards the XAU ?
It is rather fear that might take the upper hand to increase the gold opportunity ?
 
Jotatcha said:
So if i am meant to get a clue, rising inflation definitely do not push investor towards the XAU ?
It is rather fear that might take the upper hand to increase the gold opportunity ?
More...
Yes fear and uncertainty. Now sometimes that means inflation, sometimes not. It is just not automatic that if inflation goes higher Gold will as well.

IMO there are just too many variables to make sense of fundamentals, except in hindsight.
 
considering the state of markets , they should have raised by 150 BPS not 75

too much speculation and funny money in the system still

lets bankrupt these gambling fools
 
I think speculating on a US treasury will be a good thing. It will be profitable to enter this instrument. Interest rates are high
 
The Fed isn't serious in battling inflation. They still believe it is transitory in the sense that they believe as soon as the supply chain is fixed all will be well.

Disinflation (or deflation) was a product of JIT (just in time) globalism which has been pretty much dying since the Brexit/Trump election. That era has passed, there will be no return to a "normal" supply chain.

My guess is the lower USD and rising 10-year bond will eventually reverse. The market believes that the 10-year inflation rate is 2.71%. That seems delusional to me.

Interesting thing about Gold since 2008 is it mainly rises during Fed intervention in the economy. So I would say as soon as the Fed reverses course precious metals (along with Cryptocurrencies) will skyrocket.

Gold traditionally rises during political upheaval. It is not really a hedge against inflation. Hard assets are. Gold is really a hedge against political collapse.
 
The Fed isn't serious in battling inflation. They still believe it is transitory in the sense that they believe as soon as the supply chain is fixed all will be well.
More...

No. They know what they are doing, they are just playing stupid. They know they have printed so much money, inflating it away is the only possibly way out. They'll keep acting like they are trying to fight it.
 
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