THIS IS WHY GOLD COULD GO UP A LOT MORE.

🟨THIS IS WHY GOLD COULD GO UP A LOT MORE. OPTION 2 🟨 pic.twitter.com/AZwEOWEodv

— Win Smart, CFA (@WinfieldSmart) July 27, 2020

Dollar value after endless printing pic.twitter.com/Knov4Ii2DL

— Win Smart, CFA (@WinfieldSmart) July 27, 2020

Asset managers betting against Dollar pic.twitter.com/yn5JeK4XBF

— Win Smart, CFA (@WinfieldSmart) July 27, 2020

The world we live in:

Depressed nominal yields as inflation expectation moves higher.

Falling real yields are a big reason for the surge in gold prices.

Then add:

-Unlimited QE
-Unlimited deficits
-Debt on top more debt

Hard to not be long gold, silver & miners these days. pic.twitter.com/HNh2SrsIPw

— Otavio (Tavi) Costa (@TaviCosta) July 27, 2020

Say the Fed were to be the only game in town with regard to macro policy, where might the balance sheet end up? @DeutscheBank engages in a little bit of speculative extrapolation. pic.twitter.com/SjbSIcpX7i

— Adam Tooze (@adam_tooze) July 27, 2020

t.co/xbzLC0OgVh pic.twitter.com/H9MiEwZy5b

— M/I_Investments (@MI_Investments) July 27, 2020

The FOMC meeting is this week. Most of the market is concentrating on Yield Curve Control (YCC), but the fed funds futures market is saying lower rates are coming pic.twitter.com/6zMdNKgWS4

— Scott Skyrm (@ScottSkyrm) July 27, 2020

Watch Out: Inflation Could Be Lurking on the Other Side of the Pandemic

Without more discipline at the Fed, inflation could easily get out of control.

Dollar Move Signals New Era of Weakness for Currency, as Gold Gains

The dollar has become the world’s punching bag, and it’s likely to stay that way for awhile.

The Dollar Index Still Has Further to Fall: Westpac Bank

Sean Callow of Westpac Bank thinks that the U.S. dollar could test the low-90 level versus a basket of currencies, but will not come close to the index’s 2018 lows of sub-90.

Why Nothing Can Stop Gold: Deutsche Bank Projects Fed’s Balance Sheet Will Hit $20 Trillion In “Next Few Years”

The Fed may need to add up to $12 trillion to its balance sheet over the next few years to reach the equivalent to a shadow Fed Funds rate of -5% to fill the policy gap.