To US Fed – thank you for saving the gamblers in 2008. They should have been jailed.
We are told there is no bubble, except in gold, of course. Who would want the barbaric relic?
Since 2009 gold price was determined by the gold/dollar swap rate, which fluctuated between plus or minus 0.1%. When this rate was negative 0.1%, meaning that gold yielded 0.1% (per year) more than USD, gold rallied $100. When it was positive, gold tanked $100. Isn’t it amazing that the difference in Yield of a mere 0.1% causes $100, $200 move in price? Isn’t it great to actually be one of the setters of gold interest rates in London? Think about it!
Manipulation of Libor has been the scandal of the recent years. Why not Gofo? But of course!
Gold forward swap rate
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