Macro

Fiscal dominance and rising real rates boost gold, Luke Gromen argues - Traders Union

Fiscal dominance and rising real rates boost gold, Luke Gromen argues - Traders Union

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Source: Traders Union

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DW NOTE

Gromen's thesis — that treasuries can't hold yield without the Fed buying them, forcing real rates negative and gold higher — has now been tested under war conditions. Gold is up 32% year-over-year while the Fed holds at 3.5-3.75% with inflation well above target. The central bank isn't fighting fiscal dominance; it's administering it.

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