Gold Spikes As Hawkish Powell Sends Dollar, Bond Yields, & Stocks Lower

And it's gone...

 

The biggest post-Powell winner was gold...

 

Stocks drifted higher ahead of The Fed, but Powell's initial hawkish tone sent stocks lower - into the red for the day initially - but the machines quickly bid the dip... However, that did not hold...

 

Bloomberg's Andrew Cinko points out a potentially bearish signal for the S&P 500: this week it has broken out of the "quintessential no man's land" triangle pattern. Today's Fed decision gave more clarity on this pattern. This breakout could be a false alarm or could be the start of a more lasting downturn.

"Until/unless 2,745 can be regained on at least consecutive hourly closes, preferably a daily close, trends remain bearish" and it's right to expect further selling post the Fed meeting, Newton Advisors wrote today in a note.

 

Facebook bounced on the day but it was purely technical ramp to run stops at 200-day moving average...

 

The initial reaction from the FOMC statement was to sell the dollar and bonds but ince the press conference started, bonds were bid and the dollar sank further...

 

Treasuries roundtripped dramatically after Powell started speaking... Despite The Fed hiking the rates trajectory over the next two years, 2Y yields dropped notably (steepening the 2s30s curve)...

 

With 10Y yields ending lower on the day...

 

The dollar's Powell-plunge took it back to its lowest since Feb 26th... and he was hawkish!

 

All commodities were higher on the day with crude soaring above $65 (after bullish inventories data) and a weaker dollar...

 

But, as The Dollar sank, gold surge back above $1335 (above its 50DMA)...

 

WTI jumped to 6-week highs...

 

Cryptos were mixed on the day with no big news catalyst, but Bitcoin remains up 5% from Friday's close...

Comments

small axe Wed, 03/21/2018 - 16:02 Permalink

Snake eyes for St. Jerome today in his debut as Thief-in-Chief of the plantation. Even gold was allowed to breath free for once -- shocking.

mrtoad ThanksChump Wed, 03/21/2018 - 17:18 Permalink

BTC is bitcoin. XRP is ripple which is used by the large banks, they take bitcoin and turn it into worthless ripple. Stay away from anything used by the banksters.

I just got back to Australia from 2 weeks break in the Philippines, all on bitcoin. Turned bitcoin into Pesos at a currency exchange called Moneybees. The longest transaction time was 10 minutes. Sent some to my brothers wallet which took 3 minutes for all confirmations. 

In reply to by ThanksChump

The Real Tony ThanksChump Wed, 03/21/2018 - 16:39 Permalink

It seems the entire world already new what Powell would say long before 2pm today. All the insiders tell their friends and their friends tell all their friends then the entire world already know. The way I see it Powell didn't even have to say one single word... everyone knew before the fact. All the total bullshit started at 8:30am when silver was still down on the day.

In reply to by ThanksChump

besnook Wed, 03/21/2018 - 16:29 Permalink

so money is flowing out of dollars in anticipation of the looming bond bear to gold and silver and where else? if the rise in interest rates is due to an improving, growing economy then money would flow into equities until the economy cracks under poor returns on investment as a function of the rising borrowing rates. if the rise in interest rates is due to inflation concerns in a deflationary atmosphere then we probably get another shift in the demand curve as consumer costs go up with still stagnating wages.

remember, even tiny incremental changes in demand for dollar debt to the downside spells doom for the ponzi scheme so incremental changes in dollar hegemony will have amplified effects in the domestic market. that means you can expect to see an uptick in inflation as interest rates rise to try to offset repatriated dollars that people no longer need.

i suspect this is the beginning of the dollar rout. americans will have to get used to paying more in nominal dollars for things that are actually depreciating in value (deflation).

monopoly Wed, 03/21/2018 - 16:29 Permalink

A good day for those of us who believe in real money. Now, we just need some follow thru by Friday close and I would venture to guess the trend change is in place. General stock market is an accident ready to  happen. But, no shorts.....yet.

BetterRalph Wed, 03/21/2018 - 17:48 Permalink

For gold to SPIKE wouldn't the definition in 2018 be where's 1400, 1500, 1600 more even 2000, 2500?

$20 silver...  Come on Boss, your stackin more than me, I am a nobody and I know there's some fungus somewhere still, must be the slow hump day.