GoldNuggets — Geopolitics & Slingshots
Geopolitics vs real yields, Eastern European central bank buying, Parabolic Trendlines
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Breaking the Gold Market
Gold used to move inversely with real yields as the level of rates represented the opportunity cost of holding yield-free gold.
This relationship broke down following the Russian invasion of Ukraine, reflecting both the importance of increased inflation volatility, and the impact of geopolitics both on risk hedging demand and reserves diversification.
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Who Controls the Gold
Eastern European central banks have been major buyers of gold in the wake of the dual geopolitical + inflation shocks of the past few years.
"Striving for a sense of security is a powerful motive in a region that’s been ravaged by Europe’s wars of the past — and that now finds itself next door to the continent’s deadliest conflict since World War II" (Bloomberg)
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Respecting the Parabolic Trend Lines
Commodities analyst Graddhy observes that “Both gold and silver are respecting these parabolic trend lines perfectly. Slingshot parabolic moves in play.“
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