Bitcoin & Bullion Back Near Record Highs as Rate-Cut Bets Bombed


ASX200 Futs are pointing up 36 pts for today's session.

To the overnight mkts:

Ahead of the event risk of CPI, PPI, and FOMC Minutes this week, US stocks ambled along while the STIRs market eviscerated more rate-cut hope, sending Treasury yields higher and gold and crypto also soared amid 'policy error' fears and geopolitical tensions.

US Rate-cut expectations for June fell back below 50% with market is now pricing in only 62bps of cuts in 2024...

As 'No Landing'/Reflation starts to dominate the 'Soft Landing' narrative...

Source: Bloomberg

US Stocks, broadly speaking, went nowhere overnight.

Source: Market Watch

Bitcoin on the other hand soared back near record highs today nearing USD$73,000...

And that ancient relic - Gold - topped USD$2,350 overnight - a new record high - amid a frenzy of Chinese interest...

So in AUD terms, 1 ounce of Gold is currently worth $3,540


You can see why Gold (like Bitcoin) is a store of wealth. While the purchasing power of your AUD is going backwards, at least the gold price in AUD is going upwards.

Here's the Bitcoin price in AUD over the last two years.

Source: Yahoo Finance

You can see why both are doing well in times of financial anxiousness.

Finally, when will interest rates matter?

(interest rate inverse RHS of the chart)

Source: Bloomberg

Maybe after this week's Fed Minutes spoil the party?

Happy Tuesday!

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