The Conclusion from Jimmy Zhu
Fed is very dovish
– Everyone in Fed is looking at tapering
– Sep to Dec, in 4 months tapering is expected to happen
– Dec will likely be where the tapering will happen
If Fed tapers in December, do you think Fed will raise rates next year?
Market will likely believe rates will happen in 2023 or later.
Jimmy think that the gold prices probably until the next crisis. The pressure probably is still on the downward side. Moreover, we also know that gold prices have been actually trending lower since the beginning of the year. What’s been weighing it down, he think the one of the reason is because of the people expectation on the invasion to rise. That’s why we saw the u.s 10-year treasury you to move higher and the expectations probably on the real interest rates will continue to rise.
In the next coming few months, Jimmy think the gold priority will continue to go lower. He also says that it seems that the vaccine probably will have some effect to boost the consumer confidence so people are willing to go to shop gold.
Jimmy also talk about bitcoin. He think that the bitcoin is still considered one of the speculative assets. Its role compared with the gold is quite different. It means that there are some talks between the bitcoin and the gold. But, Jimmy sure for bitcoin to replace the gold rules probably it would still take some time. It’s due to people not really understand these assets pretty well. Besides, a lot of central banks holding are still holding the goal not really the the bitcoin,
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