Gold Soars To Record High, Dollar Dumps As Kamala Unveils ‘Populist’ Economic Plan

Gold Soars To Record High, Dollar Dumps As Kamala Unveils ‘Populist’ Economic Plan

We are sure it’s just a coincidence…

…but on the day that Kamala Harris unveils her price-fixing, vote-buying agenda for economic growth…

…the dollar plunged to 5-month lows…

Source: Bloomberg

… and gold soared to a record high, topping $2500 for the first time…

Source: Bloomberg

US equities also soared this week to their best week since 2023, led by a a 5%-plus surge in the Nasdaq (up 12% from last Monday’s lows)…

Nasdaq rallied up to a key technical resistance level – at its 50DMA and the last July high…

Which mirrors the rebound in Mag7 stocks (as they rallied up to the late-July highs, but couldn’t break it)…

Source: Bloomberg

Small Caps were lifted by an ongoing short-squeeze…

Source: Bloomberg

VIX was clubbed like a baby seal on the week, extending its largest/fastest retracement ever…

The collapse of implied vol this week leaves a massive discount to the realized vol of the last month…

Source: Bloomberg

Credit markets rallied hard this week, adjust back from “hard landing” to “soft landing” scenarios…

Source: Bloomberg

Despite all the focus on jobless claims, CPI, and retail sales, this week was actually a ‘weak’ one for US macro surprises…

Source: Bloomberg

…and that sparked a hawkish drop in rate-cut expectations – back to pre-payrolls levels (less than 200bps of cuts to end-2025)…

Source: Bloomberg

That prompted weakness at the short-end (+1bps) of the Treasury curve on the week (but the long-end ended 7bps lower on the week). The obvious shift was the bearish rise in yields after CPI…

Source: Bloomberg

The yield curve flattened significantly on the week, with 2s10s re-inverting…

Source: Bloomberg

Another choppy week for crypto but today saw Bitcoin surge back up to $60,000 as Kamala spoke. to end the week unchanged…

Source: Bloomberg

Oil prices were flat on the week after some volatile days…

Source: Bloomberg

The other side of the AI-trade – copper – is not buying the euphoria in AI stocks…

Source: Bloomberg

Also worth noting is that the yen carry trade was not fully embraced to lift stocks…

Source: Bloomberg

Finally, the plunge in the dollar and surge in stocks and gold all took place since Kamala overtook Trump in the prediction markets…

Source: Bloomberg

Coincidence?

Tyler Durden
Fri, 08/16/2024 – 16:00

via ZeroHedge News https://ift.tt/9h6rx7D Tyler Durden

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