$DXY, GOLD, SILVER, BTC/USD, Technical Outlook, Edition #144 (11/11/2021)

Things are getting tense as inflation continues to heat up 🔥 It's a showdown between Bitcoin, Gold & Silver 🤠 Who's quicker to the draw?

The Bitcoin, Gold - or Silver Bullet…?               

Consumer Price Inflation (CPI) soared to 6.1%, the hottest rise on record since the 1990s.

Qluster analysts suggest the recent uptick in prices is primarily due to the rampant surge in energy prices. 

For months, many well-known economists have rung the ‘transitory’ bell on inflation - although the households footing the bill are likely to disagree with the upper echelon.

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Furthermore, fundamental data analysis designates that inflation is not slowing; instead, it maintains a red-hot pace and plies increasing pressure on the tapering timeline announced by the US Federal Reserve (Fed). 

An apparent surge in US 10-year (US10Y) and 30-year (US30Y) bond yields fires a warning shot that interest rate hikes may need to be revised should they fail to cool off. 


Bang.


Quick to the draw is a burgeoning US Dollar Strength ($DXY) - which has also spiked when month-on-month CPI had been announced. 


Bang. Bang.


Q recalls the Bull’s view of fundamentals in precious metals, where our guest analyst pieces the inflation puzzle together:

  • Inflation is on the rise

  • Debt is at unprecedented levels

  • Economic growth stutters into stagnation 

  • Hesitant policymakers pussy-footed in tapering 

  • Potentially serious adverse effects should tapering begin (i.e. raising interest rates)

  • Decreases in asset purchases

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To offer context, Qluster analysts share a note from Technical Outlook, Edition #109

As mentioned previously, consensus expects the US Fed to send a clear signal for a tapering timeline to rein in inflation and interest rate policies by reducing monthly bond purchases - near USD 120 billion - later this year. 

US Dollar Currency Index, $DXY - Daily (D1)

Source: $DXY, BTC/USD, Technical Outlook, Edition #109 (22/09/2021)

The Federal Reserve has since announced plans to take steps toward winding back its bond purchases - starting this month with a USD 10bn less in Treasuries and USD 5bn less in mortgage-backed securities.

In the present day, Q reloads with a view of current developments.

 

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