The reason for this sudden price increase remains unclear. However, experts say that the gold futures price spike of $10 when surpassing Thursday's high may be due to the stop-loss order being activated. Trading volume reaching 0.5 million ounces is also the main driving factor for this increase.
The next developments of the gold market still have many unknowns. However, analysts say that the current difference between gold prices and 10-year US government bond yields is a "bad omen" that something bad is coming...
The Fed cuts interest rates despite accelerating inflation.
More ominously, it is the Fed's "final battle" with Interest Cost Control (ICC), Yield Curve Control (YCC) and Quantitative Easing (QE) to finance government spending. US government.
In short, a big event is about to happen. If the gold boom leads to a spike in interest rates, this could signal the start of one of two things: 1) QE (quantitative easing) or 2) YCC (yield curve control) . Because if the bond market feels the "final battle" that gold is "feeling", Fed Chairman Jerome Powell will once again have to step in to prevent the risk of a catastrophic financial collapse. .