Is everyone's favorite pet rock pulling away from #bitcoin? Perhaps. #Gold is heated, no doubt. Sure, BTC has made a great run higher these last few days, but it has some making up to do, and gold has been even more impressive.
Gold has put on a show since November, while bitcoin started to move in January. Why did gold move first? I don't know. Perhaps tradfi investors saw the banking turmoil and economic quagmire before the crypto class did.
Interestingly, gold is often seen as a hedge against inflation, so can we surmise that the markets agree with Chairman Powell that inflation isn't going anywhere? Could be.
Where is the inflation coming from? Looking at some key commodities, and they don't seem to be a problem.
YoY crude is down 37%.
Natgas is down 61%.
Copper is down 12%.
Wheat is down 40%.
Tin is down 44%.
Lean hogs are down 33%.
Oh, I see.
Eggs are up 114%.
Potatoes are up 54%.
Orange juice is higher by 63%.
Hmm. Something doesn't add up.
Labor does remain curiously strong, with jobless claims continuing to cool. In my neck of the woods, we see a lot of shops with help wanted signs and reduced hours due to labor shortages.
I don't get it. This inflation thing is way beyond my grasp. Please explain.