Oil/Gold - A few thoughts on macroeconomy
Dear Everyone,
Today some macroeconomy thoughts.
Once FED started increasing the interest rates, gold started to go cheaper (in dollars). And gold become cheaper in dollars since March. That means that the source of inflation is not a money supply. In my opinion, the source of inflation is the energy cost, especially the oil prices.
However, since month, oil is cheapper. Not only in dollars, but also when compared to gold. Is that the beginning of the downtrend? I hope so... (Bearish divergence, sell signalls and finally price top...)
That is very good information as now we have chances for the inflation would start to drop down. Why? Gold in downtrend to dollar and oil in downtrend to both gold and dollar.
But, please, remember that the prices of other goods (like food) are delayed comparing to the prices of energy costs...
With best regards,
Paweł
Today some macroeconomy thoughts.
Once FED started increasing the interest rates, gold started to go cheaper (in dollars). And gold become cheaper in dollars since March. That means that the source of inflation is not a money supply. In my opinion, the source of inflation is the energy cost, especially the oil prices.
However, since month, oil is cheapper. Not only in dollars, but also when compared to gold. Is that the beginning of the downtrend? I hope so... (Bearish divergence, sell signalls and finally price top...)
That is very good information as now we have chances for the inflation would start to drop down. Why? Gold in downtrend to dollar and oil in downtrend to both gold and dollar.
But, please, remember that the prices of other goods (like food) are delayed comparing to the prices of energy costs...
With best regards,
Paweł
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