Wednesday, July 29, 2020

Spot Gold Soars To Record High As Dollar Freefall Accelerates

Spot Gold is surging in Asian trading as the dollar is dumped.
Source: Bloomberg
Spot Gold traded above $1930, taking out the $1921 highs from 2011...
Source: Bloomberg
The dollar has crashed to 19 month lows...
Source: Bloomberg
Gold appears to be more and more in favor as an alternative place to allocate wealth amid the growing pile of negative-yielding debt (and note that cryptos are starting to get a bid for the same reason)...
Source: Bloomberg
The Fed wants us to believe that we should believe that there will be no inflation out of all this and to me that is a vast unknown. We have America’s fasted peacetime money-growth coexisting with the all-time 4,000-year record lows in interest rates. It’s a most curious and troubling juxtaposition there.” 
Grant said aggressive moves by governments and central banks are unwise.
I think what we have is a monetary moment that is unprecedented and therefore calls for extreme caution and great humility on the parts of all of us.”
So is the "monetary moment" sparking a loss of faith in fiat?