Some thoughts on #gold, #USD, #bitcoin, #yield and #cryptolending

Question for all the gold bugs out there. Why isn’t gold over $2000? The inverse relationship between gold and USD seems to have been broken. Note the chart below where we see a clear rally in gold through June and July while the dollar index fell. Then there’s August.

USD has been trashed but something happened to its relationship with gold in August. Gold stopped benefitting from dollar weakness. What happened? Where are those dollars going?

Bitcoin? It’s hard to argue against that. Bitcoin bottomed in late July and started a big rally in October while DX fell off a cliff in early November. Gold got a nice bounce off the big trashing of DX in early November but it didn’t hold. Gold plunged in late November while DX continued to fall and bitcoin rallied.

New world order? Has bitcoin become the safe haven of choice? Treasuries don’t seem to fit the bill as they’ve fallen throughout that last six months. It could be argued that bonds had to fall as rates were so incredibly low. They had no yield.

So where can you go for yield? Yep, bitcoin. Check out the bitcoin lending rates you can earn these days.

Makes you think the Fed handed bitcoin a layup by pushing rates toward zero.