Why is Gold down with inflation at 5%?

kmiklas

kmiklas

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Gold traded up on inflation expectations prior to the fomc statement release. The Fed communicated that they will act earlier than priced in, hence expectations are that the Fed won't let inflation run away. Makes more sense now?

kmiklas said:
So this makes no sense to me at all... and is really chafing.

Gold, the traditional hedge against inflation, is sharply down, when inflation came in "Hot," at 5% YOY since last year.

What gives???

Chart source:
https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm
More...
 
An explanation I've heard is the new Basel 3 banking regulations will start soon. This will force bullion banks out of the paper gold/silver business where paper markets control the price of physicals. This could start a big rally in gold. So just like cryptos, maybe big players are taking prices down and scaring the little guys so they can buy low. I have no idea if it's true--I guess we'll find out.
 
Maybe cause Gold is in downtrend on Weekly charts and Head & Shoulders top on Dailies to add to long term.

I never use fundamental news, President Peanut aka Jimmy Carter, showed me never trust the government.
Iran Hostage Crisis and Eagle Claw was a bust, damned lucky didn't get selected.
 
kmiklas said:
So this makes no sense to me at all... and is really chafing.

Gold, the traditional hedge against inflation, is sharply down, when inflation came in "Hot," at 5% YOY since last year.

What gives???

Chart source:
https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm
More...

I used to trade gold futures(GC), gold ETF(GLD), and gold mining stocks(GOLD, AUY). I was never successful at it. Gold SUCKS as a trading vehicle! Or maybe I sucked at it. I made more money elsewhere (stocks, options, other types of futures).

When you think gold should be going up it goes down and vice versa.

The reason gold goes down is because the DOLLAR is strong. Remember that then you should be fine.

But it's even better if you just use TA to trade instead of fundamentals. That's what I realized later on. If the trend is up buy. If the trend is down then short or stay flat.

GL.
 
Given the digital nature of fiat currencies these days, it seems that the supply of fiat could be expanded and shrunk pretty easily by individual nationstates independently or in concert if that were intended. We don't need no stinkin' printing presses, lol.

What's the actual method whereby fiat is generated internationally?
Who gets first crack at the fresh fiat?

What is the vig for the fresh stuff compared to 2nd, 3rd, and 5th in line users?
At which tier of users is the most inflation generated? It would seem that the first tier cats would pay pre-fiat-batch-generation-event inflation prices, and the longer and further into the broader landscape the fiat works each subsequent would pay higher vig and pay higher inflated prices as well, as more fiat gets disolved further into the fabric of society and chases the same amount of goodies.

Whats the disolution coefficient for new fiat into the fabric?
How long does it take for a tril$ to disolve into the fabric tier 1, 2, tier 5?

Imagine spending your day at the office trying to dissolve another trill$. Who do you call first? lol (right here baby, br-549, ext. 5623)

Is any of this even close to wtf's goin on?
 
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What does a chart going back 21 years look like of fiat generated internationally per month in total and individually by nationstates? What increment is that even measured in? Is fiat shrunk vs. expanded, much as electricity can be generated then stored, used, or grounded out thereby reducing the circulable supply?
Is fiat ever "grounded out", simply blanked out digitally, like burning cashola and not replenishing the old school paper fiat replacements?
Looks like bitcoin can be grounded out by password loss which makes that tranche inaccessable?
 
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Can bitcoin be grounded out by the loss of the user password effectively grounding that tranche out and making it no longer 'spendable'?
If fiat can be grounded out by other means but similar ends, then what effect would that have on the price of gold?
 
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