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  • Strong US GDP Growth Is Even Stronger Than It Appears

    From scotiabank.com

    While Q2 US GDP growth missed expectations at 6.5% (consensus 8.4%), the underlying details (here) were better than the headline growth number. The overall tone of the report lends evidence to the narrative that there is a rotation of the sources of growth relatively away from goods consumption (though still strong) and housing, toward services, investment and exports. That is a constructive indication of resilient growth not only on levels (chart 1) but also its shifting composition. The USD initially dipped on the headline miss but subsequently rallied after considering the drivers. The 10 year Treasury yield ... (full story)

so thats why gold keep going to the north ?
Nope, gold goes to wherever the f... it wants (i mean market)... The FED wasn't that hawkish and Powel reinforced that there's no date to lift buying and interest rates is even more far away to change... We saw that cristal clear in the session/interviews, anyways the market decide to tag it as a hawkish...

Now GDP can have two perspectives, it was bad so more uncertainty and lack of power in dollar, so gold goes up, but also if it was good, it would go up anyway, cause if there were good data numbers the market would think that " the FED will take action sooner", but good data also makes the currency strong.

So what I say about Gold next movements, sooner or later it will go down, because a premature rise in Gold will make chaotic ways to invest in it... by 2025/2030 Gold certainly will be in the 2000/2500, but right now it must be kept lower to attract more buyers and act as a safe haven.

And it's not about just US it's also about China the crash had impact, let's see how market goes, but no reason for the gold go up this last 24 hours.

Anyways what I also see and expect more is high volatility, cause investors are making too many decisions and not waiting for proper time/flow/adaptation of the orders inserted, so I may see a fall coming, and there's the old saying everything has to go up before it comes ....
Quoting dtanquee
Nope, gold goes to wherever the f... it wants (i mean market)... The FED wasn't that hawkish and Powel reinforced that there's no date to lift buying and interest rates is even more far away to change... We saw that cristal clear in the session/interviews, anyways the market decide to tag it as a hawkish... Now GDP can have two perspectives, it was bad so more uncertainty and lack of power in dollar, so gold goes up, but also if it was good, it would go up anyway, cause if there were good data numbers the market would think that " the FED will...
why do u think dolar is bearish>?
All markets go to wherever f... it wants. No need to fight it. Just ride it.
the forecast I think too high, it should be more than 5% for US the biggest economy in the world already good
Hope everyone gets green pips
Quoting anubieonly
the forecast I think too high, it should be more than 5% for US the biggest economy in the world already good
I totally agree.

Also, these forecasts are regularly adjusted due to new developments.
Seeing how the new COVID-19 wave is (again) affecting the global economy, a 8.5% forecasted GDP growth (QoQ) just doesn't make any sense.
Quoting nAVIN2007
{quote} why do u think dolar is bearish>?
Well I think that's easy, dollar is inflated... the economy is not going good, you see businesses needing workers but people aint going, tourism is still stopped, and real estate may enter in stagnation... The question must be why it is so high...

Now what this leads too is to currencies erosion and the rise of other areas of investment, like emergent markets and crypto...

But as Banditten said, No need to fight it (the markets), just ride it...
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  • Story Stats
  • Posted: Jul 29, 2021 12:05pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 7  /  Views: 2,495
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