Gold today! WOW!

Gold $1707.98/oz -28.29

 

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Gold's down about 1.5%, but silver's down over 4%. And since "PM price changes actually reflect changes in the value of the dollar", I'm guessing my oil change and inspection this afternoon will be cheaper, as well as any carryout I pick up on the way home. Right? Right?

 

Pay me in gold and I'll give you a free oil change. Maybe even two free oil changes if your car doesn't need synthetic oil lol.

 

Anyone have a theory as to WTF is happening to PM's...Could this be the 'Dreaded Correction'... or perhaps the 'Russian Gold Dumpsky'.....?
Enquiring minds would be interested in knowing,
J.T.

 

It's really quite simple. Investors are betting that the Fed will be forced to jack up interest rates to combat inflation. This makes the dollar more attractive than other currencies, raising its exchange rate and simultaneously pushing down the price of gold, which is valued in dollars. Additionally, since gold doesn't pay a coupon, it is less attractive when interest rates are high.

Personally, I think this is all a bit shortsighted, given that investors will be receiving debased dollars as interest payments, but what do I know?

 

I'm all in once it drops below $800/oz.

I'll have to cash in my Treasury Bonds which are getting 9.26% right now though.

 

Thanks Quint.
Sound true to me...but I know even less.
J.T.

 

Yes that's absolutely how it works and so we hodl as "this too shall pass!"

 

Indeed we do!
J.T.

Addendum:

Addendum: Been watching 'Aussie Gold Hunters' and can't settle on whether these prospectors are ill with the 'gold Fever' are just full of avarice.
It's always More gold, More gold!!

 

Everything is down, so why should GOLD be any different ?

 

Could be gold will go down again after the Fed Meeting at the end of July. I'm not sure what we're in for but we'll see.

"The Fed boosted the target to a range of 1.5% to 1.75% in June, the largest hike since 1994. Fed Chair Jerome Powell said after last month's meeting that either a move of 50 or 75 basis points was on the table when policy makers gather July 26-27."

 

Fed needs re examine increased rate hikes and give people a chance to catch up
especially on adjustable rate mortgages and credit cards.

 

Why?

 

If you thought the Fed was making bad decisions, think again. What they are currently doing to correct those bad decisions is worse.

 

Maybe, maybe not...the market will tell us.

 

Why not ? taking interest rates in major chunks hurts the working man !

 

There is a certain amount of speculation in most markets. Some with borrowed money (on margin). As rates increase the cost to own gold, with no coupon, gets expensive and drives out many speculators. Also increased selling to cover other sector losses adds pressure down.
I have about 15 times more available cash than spec gold/platinum so it’s an opportunity for for this old guy to get back in just one more time.
And an 824 FICO if precious metals get tooo low

 

The andwer

There is no maybe, maybe not when the Mint’s prices are higher than the newest Red Book.

 

a high FICO score never hurts been massaging my daughters credit for
about 4 years now and have her at
an 830 but she owes nothing on her
credit cards 0 balances anc can basically
gets what she wants