The Philly Fed’s coincident index — which is supposed to track GDP — has deviated substantially from monthly GDP (10.4% vs. 6.9%). This is likely due to its reliance on labor market data, which has remained remarkably resilient.
In the latest indication of gold's rising prominence in international finance, the yellow metal has surpassed the euro as the world's second-largest reserve asset, a European Central Bank analysis of year-end 2024 holdings has found.
When it comes to rate cuts, there's the good - when inflation falls all by itself - and the bad - when the economy falls apart too. Markets think we're heading for the former.
After resisting inflation, the Fed, most of all insane debt levels for years, the chickens have finally come home to roost for longer-dated Treasury notes and bonds.
A wise investor or trader will tune out war/politics and inflation noise and focus on what matters; gold’s relationship to cyclical and more inflation sensitive markets.
