Gold bugs, we took a huge hit today… for OANDA:XAUUSD by ZenMode — TradingView


Nice day for the dollar, non-ideal for us in gold longs. Gold took a steep dive today.

Why?

  • Jobs report did not come out hot indicating the recovery is going to take longer potentially
  • The dollar actually rose today, and I am assuming that this was driven a bit because of the jobs report.
  • TIP also dropped today ( iShares TIPS Bond ETF )
  • People may be pulling out of gold into risky assets such as Bitcoin … Tesla?

Some things to keep in mind here.

My thoughts on Gold

  • Strong day for the dollar
  • Still appears to be creating a mega bull flag
  • Strong macro factors at play
  • Rates low for years, and I commented earlier that the FOMC targeting 2% is not going to be an inflation expectation to cause a parabolic run in gold , but when viewing the yields on holding digital dollars like CircleVisa’s USD Coin ( USDC now has a market cap aiming at $4 billion) we see yields being offered for holding this dollar at 1-1 parity with US Dollar yielding rates of 7-10%. This I think is a good indicator of where real inflation somewhere is.
  • Gold bugs have the gold salesman Peter Schiff converting Bitcoin bulls to get out of crypto & into gold … /sarc 🙂
  • In reality I wonder if we are seeing an exodus out of gold into the growing market cap of bitcoin . The utility of Gold is to preserve wealth against inflation , while bitcoin is literally in a state of being parabolic right now. (Love BTC and am also heavily long it)
  • New administration will no doubt be providing added easing/stimulus



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