Gold is trading like we are in a depression:
Over the last 20 years, gold is now OUTPERFORMING stocks, up +620% compared to a +580% gain in the S&P 500.
Over the last 9 months, gold has officially surged by over +$1,000/oz.
What is gold telling us?
(a thread)
On Monday the crypto markets are mostly in the green due to technical factors, as hopeful traders continued to buy the dip. This is further supported by the weakness of the dollar, prompting some investors to bet on BTC growth. Stocks are mixed as Trump reconsidered the tariffs.
On Friday the crypto market followed stocks upward, with BTC reaching 83K. Equities are in greed again after Trump's 'optimistic' comments on the China deal. Producer prices dropped unexpectedly for the first time in half a year, with gasoline costs plunging.
On Thursday the crypto market turned red again, with ETH and SOL shedding more than 8%, while BTC slid 3%, dipping below 80K once more. Stocks fell sharply on China’s new tariffs. Meanwhile, inflation eased to 2.4% (down from 2.8%, below the 2.6% forecast).
On Wednesday, markets swing widely as Trump's 90-day tariff delay is announced. 10-year government bonds are being sold, with yields rising as high as 4.5%, as some investors flee to cash due to the rising uncertainty created by the White House's reckless economic policies.
On Tuesday the crypto market, which initially showed some resilience, is now in free fall, with even staple coins dropping by 5-10% daily. ETH is aiming for $1K—a level not seen since the start of the EU war—while BTC continues to tick down, dipping below $80K.
On Monday equities have moved further into the red territory. The tariff's self-inflicted disaster continued, with the volatility VIX index reaching its 2020 highs (60). China's rhetoric is escalating. The S&P has technically entered bear territory.
On Friday, the DOW, S&P, and Nasdaq have experienced a decline reminiscent of decades past; oil plunged to a three-year low, and gold dropped sharply as investors sold it to meet margin calls, while BTC and even ETH are not budging. It is unprecedented.
On Thursday stocks saw their worst drop in over two years, with major indices plummeting. The S&P 500 experienced its biggest fall since 2020—wiping out around $2 trillion in value. Investors were spooked by Trump’s proposed tariffs, fearing global retaliation.
On Wednesday markets all over the world were volatile in anticipation of tariffs that were to be announced after the closing. Trump imposed a 10% universal tariff, along with additional levies on 60 nations, and 25% duties on auto imports.
On Tuesday BTC, ETH, and SOL increased amid general confusion in the markets prior to the April 2 tariffs. Stock indexes are mostly in the red. Factory activity contracted for the first time in 3 months, while prices soared to their highest levels in 3 years.
On Monday BTC, ETH, and SOL are all in the red, continuing to remain in a bearish trend. Equities rebounded on technicals amid growing uncertainty surrounding the scale and scope of the April 2 tariffs, despite the Texas manufacturing activity index dropping to July 2024 level.
On Friday BTC, ETH, and SOL are in deep red, as traders continue to knee-jerk sell each time stocks decline. Monthly core PCE jumped to 2.8%, the highest increase in a year, up from 2.7%, leading to a sharp decline in stock indexes. This was added by downed consumer sentiments.
On Thursday BTC, ETH, and SOL continued to side shift as crypto market inflows sank to a 2-year low, and sentiment remained stuck in "fear." Market indexes went down as core PCE jumped to 2.6% in Q4 (vs. 2.2% in Q3), and the economy expanded by 2.4% in Q4 compared to 3.1% (Q3).