I hope you all are safe and good.
I wanted to show an interesting negative correlation between Fed's Overnight Reverse Repurchase Agreements and Gold Price.
You may also see a FRED GRAPH about that on below,
Question is ; Will there be much more weakness on Gold Price?
I guess we'll see...
This weekly series is discontinued and will no longer be updated. The non-seasonally adjusted version of this weekly series is WM2NS, and the seasonally adjusted monthly series is M2SL.
Starting on February 23, 2021, the H.6 statistical release is now published at a monthly frequency and contains only monthly average data needed to construct the monetary...
The FED just updated their series and MODIFIED the past year of data to reflect an 18 trllion monetary base. I'd like to know why their data was only showing 6 trillion until today. Maybe it's a bug? Maybe it's real? Who even knows anymore. Cash = trash
Money velocity in orange, base supply in blue.
Here's the source of series:
Triple bottom bounce incoming? Money printer go brrr.
Green = inflation adjusted (negated from price, representing a lower price)
Orange = actual market price
Of course I didn't take LTC inflation into account. Is it useful? You be the judge.
Gross domestic product (GDP) is the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment, net exports of goods and services, and government consumption expenditures and gross investment....
Powell's admission that he's not even thinking about, thinking about, thinking about raising interest rates means there's no possible scenario under which the Fed would raise rates. No matter how low the dollar falls or high gold goes, the Fed will be late again. I suspect the mmimd or lower 80s the the DXY is on the way. This is based on clear-cut macroeconomic...
Here we see the correlation of Gold (XAUUSD) and M1 (money supply composed of physical currency and coin, demand deposits etc). During the last two financial crises (DOTCOM and SUBPRIMES), the central bank raised the rates to support the stock market collapse and save the economy from recession.
As you see when rates were raised and money supply spiked, Gold...
This data is published quarterly, so I have set the bar resolution to 1/2 a year aka 6 months aka 26 weeks.
The SPX500 Index is shown in red for comparison's sake.
Would you rather speculate in housing or speculate in the market?
Which one is more likely to pay you for your risk-on?
Manage your own risk
A paradigm shift followed the "It's time" chart more rigidly than even I expected. Apologetically we can give the official ✅ for those following the example of dogmatism from @ridethepig and can see clearly how far we have come:
📌 It can be said that the opening knee-jerk reaction ...
You can copy this chart as your own to get the indicators.
Required Reserves of Depository Institutions, in $ Billions
Explanation: This action...
September 2008 - The Fed started printing fiat in overdrive soon before the bank bailout of early 2009. Bitcoin's first block was also mined at the news of this in January 3-9th 2009.
However monetary base has been in decline, retracing. What does this mean for the derivatives market and the Repos?