Some very big surprises are unfolding today and it will all benefit the gold market.
Any Excuse To Delay Tapering
July 19 (King World News) – Peter Boockvar: …in the debate over what the Fed will do next, I wouldn’t be surprised at all that these variants will be the excuse for a delay in any tapering. Not that QE or not will matter in addressing the virus or the economic risks, but it will be a major part of the discussion.
“For The Foreseeable Future, Tight Policy Isn’t The Right Policy.”
Last week we heard from two BoE members who want to more quickly end QE. Today Jonathan Haskel, another member, said not so fast. “In the immediate term, the risk of a pre-emptive monetary tightening curtailing the recovery continues to outweigh the risk of a temporary period of above target inflation. For the foreseeable future, in my view, tight policy isn’t the right policy.” As rates will still be at about zero even when QE ends, it will still be far from tight. As Delta driven slowdown fears are becoming more of a focus, today’s bond rally is global with the 2 yr gilt yield in particular down by 2 bps and the yr lower by 3.7 bps. The pound is lower but so is everything else vs the US dollar.
“Long Term Bearish On US Dollar…But Anything Is
Possible Here On The Upside In The Short Term.”
The US dollar continues to rally as part of the ‘risk off’ trade and we are approaching the late March level but that was when the US dollar was rallying for a different reason, when Treasury yields were spiking. I remain long term bearish on the dollar due to the large US debts and deficits but anything is possible here on the upside in the short term…
To learn which company billionaire Eric Sprott bought a
$10 million stake in click here or on the image below
INFLATION: CRB Continues To Hit New Highs
I know people continue to focus on lumber prices and its sharp fall but just a heads up that tin on Friday closed at a record high …and the CRB raw industrials index ended the week at a fresh 10 yr high.
Price Of Tin Hits Another All-Time Record!
…and the CRB raw industrials index ended the week at a fresh 10 yr high.
GOLD BULL ALERT: CRB Hits Fresh 10 Year High!
China And Japan Continue Dumping US Treasuries
For all the talk of foreign investors buying US Treasuries in order to pick up more yield, the results are mixed as the TIC data late Friday showed net selling in May of notes and bonds of $93.4b taking the year to date tally to net selling of $39.4b. Japan, the largest foreign owner of US Treasuries, continues to be a net a seller of notes and bonds and China resumed selling in May as the entire Asian region were net sellers in the aggregate. European players on the other hand have been buyers since January as the yield needs there are acute thanks to negative rate policy.
King World News note: Here is a look at iron ore (steel) prices which are also continuing to soar.
ANOTHER INFLATIONARY GOLD BULL CATALYST:
Price Of Iron Ore Continues to Skyrocket!
King World News note: Although games continue to be played in the paper gold market, the price of gold is headed far higher than anyone can image today. Fiat money is being debased across the globe and the gold bull will stampede higher in short order.
ALSO JUST RELEASED: Greyerz – Do Not Pay Any Attention To This Takedown. Massive Cup & Handle Has Price Of Gold Headed To $3,000 CLICK HERE.
***To listen to this powerful discussion about exactly how the Fed and other central banks’ tapering is going to directly impact the gold and silver markets and why it will be incredibly bullish CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the implementation of Basel 3 and its impact on the gold market CLICK HERE OR ON THE IMAGE BELOW.
© 2021 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.