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“Gold is making waves in the markets, and on Friday it hit a two-week high, advancing in the $1,500 channel in a further build-up as expectations of an impending Fed rate cut on Wednesday gain momentumThe strength of a trend. Its corollary is the pace at which the value of an asset changes..”
These words, written as the year turned, could easily be set aside and offset with a macro button in any newsgathering’s MS-Word infrastructure.
Every so often, the US Federal Reserve’s Open MarketA location or entity where people and entities can negotiate and trade assets of value. Committee members meet to set their new interestThe cost of accessing money not owned. rates, publish their forward guidance and prod gold up or down.
Their influence on Dollar-based currencyA financial medium for the exchange of value. In economics, it is the monetary system employed by a ... pairs is lesser thanks to the monetary policies of competing governments, but gold – traditionally priced in US Dollars and evaluated in reverse relation to the dollar – remains at the mercy of the FED and its countermanding Commander in Chief.
If only there were some world currency that was impervious to world events and announcements, just waiting for its opportunity to step in the moment the antics of the others become insupportable.
Oh, wait.
When Facebook offered to the world its new cryptocurrency – Libra, central bankers and leaders alike stood up on their back legs and yelped with fury.
The reason? a 2.5-billion e-resident virtual nation had just announced its aim to install an independent currency.
The next stage to actual statehood is usually adopting a flag, applying to the UN for membership and fashioning foreign and defence policies.
And this state would be all-encompassing, boundary-less, represented by millions the world over – an easy vanquisher of the Greenback. Transparent, credit bashing and easily trackable.
Everything the gold-hoarders fear.
