Gold Monitoring Thread £ GBP only

[Chronos]

China FX Outflows Soar As Beijing Dumps Record US Securities:

https://archive.is/IXz3m

[Gruff]

[VGfine]

30 minutes ago, Gruff said:

What does this mean? 

[davejones]

If a teacher puts their 5% pay rise that takes them into a higher tax bracket into a 7% isa will that cover the coming tax rise that pays for it?

[HonestMoneyGoldSilver]

40 minutes ago, VGfine said:

What does this mean? 

TL:DR version: The BoE wants banks to use long-term repos amid a liquidity drain to ensure that banks have stable, long-term access to funds. This helps manage liquidity risks, stabilise the financial system, and support the BoE's broader monetary policy goals (control interest rates/inflation)

A liquidity drain is much like it sounds. There are less cash and cash-like equivalents in the wider banking system. If a drain turned into a blockage, people could struggle to get their money out of the bank, causing panic and bank runs. Banks could also struggle to lend to businesses, and businesses to other businesses. 

A repo agreement = Repurchase Agreement. They are commonly short-term with the "overnight repo rate" being an often quoted metric. As the name suggests, these are lending agreements with a duration of 24 hours or less. Generally repos are short-term instruments with a maturity in hours/days/weeks

The BoE wants banks to use long-term repos, i.e. longer than weeks (months/years). With repos, one party sells an asset - government securities (Treasuries/Gilts) are the most common followed by MBSs (Mortgage Backed Securities, REITs, sometimes CMBSs), AAA corporate bonds and gold - to another party with an agreement to repurchase them at a later date for a higher price

Typically repos are utilised over shorter horizons so when the BoE is telling banks to use longer maturity repos due to a liquidity crisis, it's a solid indication that something has gone badly wrong in the banking system - systemic risk factors

EDIT: Should theoretically be good for gold but spot is basically doing nothing

Edited July 22 by HonestMoneyGoldSilver
Gold

[VGfine]

14 minutes ago, HonestMoneyGoldSilver said:

TL:DR version: The BoE wants banks to use long-term repos amid a liquidity drain to ensure that banks have stable, long-term access to funds. This helps manage liquidity risks, stabilise the financial system, and support the BoE's broader monetary policy goals (control interest rates/inflation)

A liquidity drain is much like it sounds. There are less cash and cash-like equivalents in the wider banking system. If a drain turned into a blockage, people could struggle to get their money out of the bank, causing panic and bank runs. Banks could also struggle to lend to businesses, and businesses to other businesses. 

A repo agreement = Repurchase Agreement. They are commonly short-term with the "overnight repo rate" being an often quoted metric. As the name suggests, these are lending agreements with a duration of 24 hours or less. Generally repos are short-term instruments with a maturity in hours/days/weeks

The BoE wants banks to use long-term repos, i.e. longer than weeks (months/years). With repos, one party sells an asset - government securities (Treasuries/Gilts) are the most common followed by MBSs (Mortgage Backed Securities, REITs, sometimes CMBSs), AAA corporate bonds and gold - to another party with an agreement to repurchase them at a later date for a higher price

Typically repos are utilised over shorter horizons so when the BoE is telling banks to use longer maturity repos due to a liquidity crisis, it's a solid indication that something has gone badly wrong in the banking system - systemic risk factors

EDIT: Should theoretically be good for gold but spot is basically doing nothing

What a joke, the financial system is all just smoke and mirrors!

[HonestMoneyGoldSilver]

2 minutes ago, VGfine said:

What a joke, the financial system is all just smoke and mirrors!

It has been artificially manipulated in historically unprecedented ways since 2008, with the modern "system" as we know it beginning circa 1999 (GLBA '99/CFMA '00)

[Thelonerangershorse]

£1855.55

Al least it seems to have stopped dropping.

 

 

 

(Famous last words)

[Paul]

9 minutes ago, Thelonerangershorse said:

£1855.55

Al least it seems to have stopped dropping.

 

 

 

(Famous last words)

It was £1900oz last Octember when I last looked

[Thelonerangershorse]

35 minutes ago, Paul said:

It was £1900oz last Octember when I last looked

I think the ATH was around £1955 around March/April

[James32]

On 21/07/2024 at 19:50, flyingveepixie said:

Up.  Gotta be..

You sold me a stinking lie

[Paul]

1 minute ago, Thelonerangershorse said:

I think the ATH was around £1955 around March/April

£2000 very soon, I've no doubt

once it hits $400oz first as Wonga said 

it'll be at £2000oz again before we know it....

then...... to da mooooooooooooon 🚀 🚀 🚀! 

[flyingveepixie]

5 minutes ago, James32 said:

You sold me a stinking lie

Well at least it hasn't gone to £400.....yet.

[HowardW]

Don't forget it's COMEX option expiry on Thursday and OTC options expiring on Monday - same drill at the end of every month as these technical market factors take over. Expect prices to stay around big round numbers (in $ terms) - meaning around $2400 on gold and $29 on silver until after then, barring anything dramatic in the world. 

[Bogart]

I should stop reading this thread as am understanding less and less.

[Chronos]

Goldman Expects Gold To Surge On Relentless Chinese Demand ($2,700 year-end price forecast):

https://archive.is/upVnk

[Paul]

11 minutes ago, Chronos said:

Goldman Expects Gold To Surge On Relentless Chinese Demand ($2,700 year-end price forecast):

https://archive.is/upVnk

Wwwwhhhhhhooooooooooooo carry on stacking everyone 💪 !!

[Paul]

3 hours ago, Bogart said:

I should stop reading this thread as am understanding less and less.

A lot of folk who have been here since the start of the thread have been thinking the same since 2015 😔 

[Paul]

19 hours ago, flyingveepixie said:

Well at least it hasn't gone to £400.....yet.

And day now though 

[Bratnia]

31 minutes ago, Chronos said:

Goldman Expects Gold To Surge On Relentless Chinese Demand ($2,700 year-end price forecast):

https://archive.is/upVnk

Perhaps a indication that Goldman is looking to sell some gold.

[Thelonerangershorse]

7 hours ago, Bogart said:

I should stop reading this thread as am understanding less and less.

Upgrade to gold membership then go read the NBS,

Trust me, this thread makes perfect sense.

[BLOOMMAN101]

[ZRPMs]

2 hours ago, Thelonerangershorse said:

Upgrade to gold membership then go read the NBS,

Trust me, this thread makes perfect sense.

The New British Standard thread? I bet that's amazing. Full of intellectuals and burning issues of the day. 

[Chronos]

Bank of Canada Cuts Rates For Second Consecutive Month, Says "Reasonable" To Expect More:

https://www.zerohedge.com/markets/bank-canada-cuts-rates-second-consecutive-month-says-reasonable-expect-more

Bank of Canada Restarts Overnight Repo Market Liquidity Injection Signaling Financial System Liquidity Issues:

https://jensendavid.substack.com/p/bank-of-canada-restarts-overnight

 

Edited July 24 by Chronos

[Chronos]

USA: 63% of Employees Are Unable to Cover a $500 Emergency Expense:

https://www.fool.com/the-ascent/personal-finance/articles/63-of-employees-are-unable-to-cover-a-500-emergency-expense/

Edited July 24 by Chronos