Re <<If gold is a geopolitical risk hedge, why has it gone down, when everyone starts worrying about a European war?>>
... all good questions.
In the case of geopolitical risk, perhaps it is all US-UK propaganda, since the Ukrainians do not appear to sense the urgency.
edition.cnn.com
Ukrainian official tells CNN Biden's call with Ukrainian President 'did not go well' but White House disputes account
Re <<Looks to me, copper and oil are acting better than gold as a geopolitical risk hedge.>>
Having sown doubts about geopolitical risk, perhaps oil and copper are transitorily inflating, both supply constrained as opposed demand zooming, given that the sectors have experienced under-investment.
Re <<If gold is an inflation hedge, why has it been stuck around $1800, during the highest inflation in a generation?>>
Perhaps because market expectation is for USA rates to zoom, as if Team USA will actually be given the necessary medicine and actually able to stomach the brew.
Maybe because such expectation, at the margin, drives the USD up, which it is doing, and gold, often the other side of many USD trades, would be down, especially given amount of paper gold being constantly discovered and dug up. If so, as Martin Armstrong intoned, gold shall rise when governments fail.
IOW gold shall only be correctly priced when ... I best stop, because the images conjured up too graphic.
In the meantime good is certainly rising in terms of bitcoin, or crypto gold, even as crypto gold, in the grand scheme of happenings, is quite expensive in USD terms.
IOW, all is not exactly well, and the churning shall reveal the truth, but later. |
