Why is AU going up?

kmiklas · Feb 20, 2020

OK metalheads, wth is going on with the price of gold?

- Is there some military operation at work?
- Corona virus?
- Election Jitters?
- China?
- Superbowl halftime show?

The U.S. economy is red hot... why are peeps buying into gold? is their capital not better placed in the equity markets?

...but candlesticks don't lie.

p.s. You metals people scare me a bit.

traider · Feb 20, 2020

Too much money, it's going into every asset class

ET180 · Feb 20, 2020

kmiklas said:
OK metalheads, wth is going on with the price of gold?

- Is there some military operation at work?
- Corona virus?
- Election Jitters?
- China?
- Superbowl halftime show?

The U.S. economy is red hot... why are peeps buying into gold? is their capital not better placed in the equity markets?

...but candlesticks don't lie.

p.s. You metals people scare me a bit.

Maybe market starting to realize that endless CB liquidity + $1T+ annual increases to the US national debt during what is claimed to be the greatest economy ever (which of course means we need negative interest rates and QE immediately) might not be a sustainable condition.

tiddlywinks · Feb 20, 2020

Pay attention in terms of other currencies...

Notice when things BEGAN to get interesting. Just saying.

XAU/EUR
https://www.tradingview.com/x/eZHSc4Nf/

XAU/JPY
https://www.tradingview.com/x/XBfrg6R5/

--------------------------------------------------
XAU/USD
https://www.tradingview.com/x/ps0ed3KG/

gkishot · Feb 20, 2020

Election jitters.

tiddlywinks · Feb 20, 2020

gkishot said:
Election jitters.

That doesn't explain the Dollar Index.

Or the conventional wisdom that in general, as the USD rises, gold (and other commodities) move down.

gkishot · Feb 20, 2020

tiddlywinks said:
That doesn't explain the Dollar Index.

Or the conventional wisdom that in general, as the USD rises, gold (and other commodities) move down.

Upcoming election jitters and today's superior state of US economy.

tiddlywinks · Feb 20, 2020

gkishot said:
Upcoming election jitters and today's superior state of US economy.

So on one hand, jitters about a known future event in the USA means the jitters are buying the dollar. And on the other hand, buying the dollar because of the superior US economy(which is debatable on some metrics).

Meanwhile, gold is breaking out to multi-year highs in the weakening currencies as well as the strengthening USD, and the ET community at large is calling for end of days for the stock market. Pretty dichotomous if you ask me. Oh wait, I forgot the stock market portends the future, just like it did in '07-08. Yea, that's it.

gkishot · Feb 20, 2020

tiddlywinks said:
So on one hand, jitters about a known future event in the USA means the jitters are buying the dollar. And on the other hand, buying the dollar because of the superior US economy(which is debatable on some metrics).

Meanwhile, gold is breaking out to multi-year highs in the weakening currencies as well as the strengthening USD, and the ET community at large is calling for end of days for the stock market. Pretty dichotomous if you ask me. Oh wait, I forgot the stock market portends the future, just like it did in '07-08. Yea, that's it.

Another reason why people would buy dollar today is of its higher interest rate relative to other major currencies.

tiddlywinks · Feb 20, 2020

gkishot said:
Another reason why people would buy dollar today is of its higher interest rate relative to other major currencies.

And physical gold does not pay interest or dividend. The "for" USD bullet points do not explain the new multi-currency bull market in gold, unless the REAL problem is non-USD based. [wink]