With the interest rate hike correlation to US10Y Bonds, as the rates are rising we are seeing demand for risky assets drop off, people are cashing out of these asset classes and money is moving to bonds, in consequence we are seeing the USD start gaining great strength.
Going forward we could see XAU make moves from its old value area and make a move down to pre-covid inflation around $1200-$1300.
I recently posted a short in the US stock market which I have attached below of where I believe the market will price in if what we are seeing in the rates and bonds continue to occur.
Crypto being the most risk adverse of assets discussed here and the volatility involved imo holds the greatest risk yet, although we could see this obscene dollar valuations as a rare occurance? maybe a DCA approach can lead to good returns overall. However I see large falls inbound whether they happen this week or next who knows, but it is a risky asset class to hold in potential market turbulence we could see over the next few months.
Going forward we could see XAU make moves from its old value area and make a move down to pre-covid inflation around $1200-$1300.
I recently posted a short in the US stock market which I have attached below of where I believe the market will price in if what we are seeing in the rates and bonds continue to occur.
Crypto being the most risk adverse of assets discussed here and the volatility involved imo holds the greatest risk yet, although we could see this obscene dollar valuations as a rare occurance? maybe a DCA approach can lead to good returns overall. However I see large falls inbound whether they happen this week or next who knows, but it is a risky asset class to hold in potential market turbulence we could see over the next few months.
