Today saw gold breach new all-time highs and finish the day without giving much back. In fact, it gave nothing back and settled at those new all-time highs. Here is the Bottom Line recap.
First: we would draw your attention to how high gold got in percentage terms. It was up about 2%, but not over 2%….
Who Bought it?
Gold was bought by Funds, both American and overseas. It was bought by Bullion banks covering shorts based on information and experience. Bullion Banks will sell Silver to keep Gold in line while they buy gold as needed. We know this.
December futures, the next contract after August expires, is above $2500...
Why?
Bonds rallied somewhat. But not enough to pop gold 2%.
The dollar was unchanged on the day despite rallying early on…
Gold was bought in Europe, then bought aggressively in the US…
Silver was used to keep Gold in line all night…
Then Why Did They Buy it?
Gold has seriously become a discounter of future events in bond and dollar terms. The correlation is flipping as most recently detailed in these two video posts:
We strongly urge you to listening to the second one and read/scan the first one for insight and analysis of this completely new (but really old) phenonemon
Even Zerohedge noticed it today implying Gold was discounting a collapse in bond yields
Finally, it does make us wonder, just what kind of crisis Gold is seeing that means a massive swing to negative real rates...
What Else?
The marketplace is waking up to several eventualities in the wings
Trump will be likely be President bringing open talk of a gold standard, which while unlikely will raise awareness and possibly give a push to gtrue price discovery. This is a function of the Project 2025 (pdf here) mandate tied to Trump and circulating now.
Restoring a gold standard retains appeal among monetary reformers who do not wish to go so far as abolishing the Federal Reserve.
Both the 2012 and 2016 GOP platforms urged the establishment of a commission to consider the feasibility of a return to the gold standard,27 and in October 2022, Representative Alexander Mooney (R–WV) introduced a bill to restore the gold standard.
Trump was almost assassinated. This does not send out stability to overseas nations. And is starting to look like n inside job to some
Trump’s likely polices governing trade, debt management, and economics governing export/imports are being viewed as necessitating a weaker dollar by smarter money
There is as stated in this space many times, nothing but buying waiting for an opportunity to step up overseas. This buying is mostly BRICS but also EU countries. The BRICS buying is starting to throw in the towel on waiting, especially as their summit approaches.
Both the 2012 and 2016 GOP platforms urged the establishment of a commission to consider the feasibility of a return to the gold standard,27 and in October 2022, Representative Alexander Mooney (R–WV) introduced a bill to restore the gold standard.
