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Morning JAVA: Gold Breaks Records 3 Days In A Row

Morning JAVA: Gold Breaks Records 3 Days In A Row


PublishOx - Earn crypto for blogging

Gold's Three Day Winning Streak!

 

Since last Thursday, gold has been on a tear. By the end of the trading day on Friday March 1, gold closed at $2,082 for a record high weekly close.

On Monday, gold managed to close above $2,100 for the first time ever for a record daily close of $2,116.

During Tuesday's trading day, gold managed to breach its previous intra-day high of about $2,144 set on December 1, 2023. According to Kitco News, the spot price of gold hit $2,150.50 to set a new intra-day record high. The screenshot below was taken around the same time.

Kitco Gold 5 Day Chart - March 5, 2024

Gold wasn't satisfied with just one record for Tuesday. The yellow metal would go on to close at $2,126.30, beating the previous day's record close. Gold broke two records in a single day!

These are historically significant times. Gold has now broken four records, three trading days in a row and wouldn't you know it, gold looks poised to hit another record closing high today as it is holding well above $2,130.

Kitco Gold - March 6, 2024 7:30am

The real gains started last Friday when a report from the Institute For Supply Management showed its manufacturing index dropped to 47.8 in the month of February suggesting an economic contraction is underway.

 

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It's not just gold that's on a tear. Bitcoin breached its all-time high yesterday and for a brief few moments, had a market cap bigger than silver's. Prices topped $69K, finally taking out the previous November, 2021 high. As it broke through its previous high, Bitcoin became the eighth most valuable asset on the planet, surpassing silver with a market cap of $1.347 trillion.

Then, almost immediately after hitting a new high of $69.33K, Bitcoin 'crashed' almost 15% in dramatic fashion. This historic screenshot was taken yesterday. I'm not sure but this may be Bitcoin's single biggest daily drop ever. Although it's hard to get an exact number, it's fair to say we're looking at an $8K+ (possibly 9K?) drop here in a matter of a few hours.

Kitco Bitcoin Chart - March 5, 2024 5pm

The next Bitcoin 'halving' is set to occur in about a month's time. Bitcoin miners earn 6.25 Bitcoins for every new block successfully registered into the blockchain. Sometime in early April, earnings will be reduced by half to 3.125, hence the term 'halving' This event happens every four years and each time this occurs, the earnings are halved, making it harder and more expensive to mine Bitcoin. The next halving obviously has something to do with Bitcoin's incredible price surge.

Fortunately for HODLers, Bitcoin has recovered nicely in overnight trading. Here's what Bitcoin look like at 8:10 am this morning. 

Kitco Bitcoin Chart - March 6, 2024 810am

One last thing, keep an eye on the REPO market. Last Thursday and Friday, the REPO market saw a decline of $127 billion, down to just $441 billion. REPO is where financial institutions park excess money at the FED, earning interest  with very low risk. At the beginning of this year, the REPO market was topping $1 trillion. What happens when all that excess cash is no longer available? Turn on the printing presses? We should have an answer in about 2 months time, maybe less with the speed the REPO market is winding down. (See The REPO market is winding down)

In December, 2022 the REPO market was well over $2.5 trillion. The winding down actually started around the month of May, 2023. Since then, almost $2 trillion has been siphoned out of the REPO markets. These were excess trillions printed between 2020 and 2022. Should the REPO market be termed 'Stealth Q.E.'?

When the excess cash runs out, that's when the real fireworks start, I believe. Like the fireworks we're seeing now isn't spectacular enough. Anxious to see how things turn out by the end of April / beginning of May.

Stay tuned for later today when FED Chair Jerome Powell will be speaking before the U.S. House Of Representatives on U.S. Monetary Policy. Investors will be closely watching for any clues on the future path of U.S. monetary policy.

Finally, here's the one month chart for Ethereum. All I can say is... WOW!

Kitco Ethereum 1 Month Chart - March 4, 2024

Be sure to check out my previous Morning JAVA posts. See links below. Sometimes, one article just isn't enough when you're enjoying a good cup (or two) of coffee first thing in the morning!

 

 

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SweptOverNiagara
SweptOverNiagara

Name's Joe and I live in Ontario, Canada. I like writing on a wide variety of topics. I enjoy keeping track of markets, investing and commodities and the crypto sector. Also do some coding for web browsers.


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