Gold and digital Gold (aka Bitcoin) seem to enjoy Powell dovishness and dollar weakness
Gold gained 2.4% following dovish Fed meeting, Bitcoin gained almost 5%. Source: HolgerZ, Bloomberg
Gold rallying to 2k$ despite investors selling gold is remarkable. Is it all driven by central banks demand?
Source: Michel A.Arouet, Bloomberg
GOLD remains 20% below the 1980 peak inflation adjusted
Source: DB, Win Smart
Central banks are on pace to buy over 1,000 tons of gold again
Despite the near-record annual purchases, it's worth noting that these institutions once held 80% of their balance sheet in gold Today, it's barely 20%. A return to the historical average of central banks holding 40% of their balance in gold could propel gold prices north of $3,000 based solely on that capital dynamic... Source: Tavi Costa, BofA
A golden cross on gold (50d MA is trading above 200d MA and both are trending higher)
Source. Bloomberg, Tavi Costa
Interesting market action... Bitcoin and Gold just moved in sharply opposite directions after weeks of similar price action. Beginning late Sunday night, both assets jumped sharply
Since then, Bitcoin is up 6.5% while gold prices have posted a massive $100 reversal. Some shift from gold to digital gold? Or just a random short-term divergence? Source: The Kobeissi Letter
Gold hit record high 2'135.39/oz in early trading hours
Gold surged to a new all-time high as growing expectations for US rate cuts early next year. This latest leg of gold's rally has been turbocharged by comments on Friday from Fed Chair Jerome Powell. Precious metal's strength has been underpinned buy other factors as purchases by governments and central banks as well as geopolitical uncertainty.
A wake-up call to start the week with Gold trading above $2,100 and digital gold aka bitcoin trading above $41,000
I do see 2 messages here: 1) Short-term: Mr Market believes Mr Powell is bluffing, i.e rate cuts are coming; 2) Long-term: dollar debasement is inevitable. Investors and central banks are looking for reserve status
