Gold as Inflation hedge

[dancingshoes]

janet yellen very good, she takes care of equity players with her dovish speech. all data dependent whether will raise rate within this year and greece impact, i really doubt they can raise rate this this year, the timeline she gave was sept, dec and march 2016. what say you?

 

[Runifyouhaveto]

Gold just big crashed
http://www.businessinsider.sg/gold-just-got-destroyed-2015-7

market whisper: the super big seller is china.

 

[eatshitndie]

when gold goes down demand for u.s. dollar goes up.

 

[Runifyouhaveto]

when gold goes down demand for u.s. dollar goes up.

brother, here's a more interesting thing to note

If gold n USA both appreciate together against the rest of the world, usually it is bad for equities
If gold n USA both depreciate together against the rest of the world, it is also bad for equities

my 2 cents
so hope USD will not collapse later today when US resumes trading.

 

[Runifyouhaveto]

View attachment 22598

so if my theory is correct, we should short USDSGD at this rate.

PS: lose money dun blame me, just a hypothesis
This is not an investment advice.

 

[dancingshoes]

looking at the daily dollar index, it's still a strong wave of buying USD against a basket of other currencies. no chance it will crash.

 

[Runifyouhaveto]

looking at the daily dollar index, it's still a strong wave of buying USD against a basket of other currencies. no chance it will crash.

Your thinking is the popular-vote. A few hours ago at 1.3719 when Eatshit bro pointed out that USD might be strengthening because this is what everyone will bet on. But as of now, there's no upside yet (now 1.3715).

So it hints that if equities market drops tonight, USD will be weaker against SGD

 

[sleaguepunter]

when gold goes down demand for u.s. dollar goes up.

View attachment 22598

the only trade I make $$ for the past year. have not add interest yet.

 

[dancingshoes]

Your thinking is the popular-vote. A few hours ago at 1.3719 when Eatshit bro pointed out that USD might be strengthening because this is what everyone will bet on. But as of now, there's no upside yet (now 1.3715).

So it hints that if equities market drops tonight, USD will be weaker against SGD

bro run,

it's good to spar with you on markets, US equities has minimal correlation with USD. a more positive correlation will be with US 10 Year or 2 year Treasury.

as enclosed, you can see from the chart that there is no strength from buying which means the yield is down, USD is down too. note that you have to refer to different time frames, i used the hourly chart for reference. imho, i think tonight investors are testing water but from my analysis in above post,
USD is still strong, so more likely, tonight's market point to USD appreciating again.

 

[Runifyouhaveto]

USD is still strong, so more likely, tonight's market point to USD appreciating again.

it is slightly weaker now after 24hours.

 

[Runifyouhaveto]

Brother Dshoes,
US equities n USD dropping.
Dow -175
USDSGD 1.365
The big boys are harvesting.

 

[dancingshoes]

Brother Dshoes,
US equities n USD dropping.
Dow -175
USDSGD 1.365
The big boys are harvesting.

yups, profit taking, buy on dip

 

[jw5]

Anyone tried buying gold from the vending machines?

 

[eatshitndie]

prc fucked up big time trying to manipulate euro-buying with dollar-selling to keep yuan high to the tune of $299b of their reserves and $4t in total exposure until signs show that the yuan is no longer appreciating no matter how much tiongs throw at it. this a few months before prc pushes the yuan as a reserve currency for the imf to approve. it's unravelling, and tiongs eat crow by going back to buy the dollar. no choice as euro is weakening.

http://finance.yahoo.com/news/4-trillion-force-china-helped-004928579.html

 

[Runifyouhaveto]

prc fucked up big time trying to manipulate euro-buying with dollar-selling to keep yuan high to the tune of $299m of their reserves and $4t in total exposure until signs show that the yuan is no longer appreciating no matter how much tiongs throw at it. this a few months before prc pushes the yuan as a reserve currency for the imf to approve. it's unravelling, and tiongs eat crow by going back to buy the dollar. no choice as euro is weakening.

http://finance.yahoo.com/news/4-trillion-force-china-helped-004928579.html

very enlightened by the article.
Good sharing

 

[eatshitndie]

very enlightened by the article.
Good sharing

oops! it was $299b, not $299m.

 

[Runifyouhaveto]

oops! it was $299b, not $299m.

yes, i saw that part in the article

 

[Runifyouhaveto]

prc fucked up big time trying to manipulate euro-buying with dollar-selling to keep yuan high to the tune of $299b of their reserves and $4t in total exposure until signs show that the yuan is no longer appreciating no matter how much tiongs throw at it. this a few months before prc pushes the yuan as a reserve currency for the imf to approve. it's unravelling, and tiongs eat crow by going back to buy the dollar. no choice as euro is weakening.

http://finance.yahoo.com/news/4-trillion-force-china-helped-004928579.html

The rich transferred money out to US properties
http://www.zerohedge.com/news/2015-07-22/existing-home-prices-hit-record-sales-soar-8-year-high

Then US property prices cheong. In some peaceful Asian districts in California, property prices went up by 70-100% in 3 years.
So we will see rate hike this year - 25bp is priced in. 50bp is a brave move.
Rate hike = USD strong
Yuan will also be stronger against the rest of the world because they are closely linked with USD strength.
Yuan strong = China exports die harder.

Rate hike = Gold worth a bit less

 

[Runifyouhaveto]

Gold crashed by another % as China's PMI sank to 48.2

 

[vomitblood]

rather to buy gold, i think USD will be a better hedging option now given that sentiment is favoring a int rate increase.