00:00 Speaker A
What are we seeing across the safe haven space? Because there’s been some pretty eye-popping moves even just over the past week.
00:06 Speaker B
Most definitely. I mean, gold is headed towards its best week since 2020. You have seen record after record. And when we saw equities selling off yesterday, you saw gold that was still hitting all-time highs. Now, gold is sort of right now easing a bit. It is it was going towards 2,400. It may have some resistance around that level.
00:30 Speaker B
The question is this big massive rally that we’ve seen in the gold space as a safe haven. What is this telling us about the economy? What is this telling us about the future? What is it telling us about money printing, about the expectations of the Fed easing? Is it easing because the economy will be deteriorating, especially now given what’s happening with the uh regional bank woes?
00:54 Speaker B
So that those are some of the questions surrounding uh gold, but still you have seen this massive rally year to date. If we do start to see some pressures with equities, if we do start to see some heavy selling, then you could see margin calls and you could see uh gold selling off. But keep in mind, big buyers are central banks here, and the central banks won’t be selling. Uh they are not sellers. They are stuck buyers uh when it comes to gold.
01:21 Speaker A
Yeah, and as gold continues to rise, we’ve seen some serious sell-offs in Bitcoin. Just over the past five days, Bitcoin is down 8% trading just around $105,000 a coin. And in the meantime, you have oil that has really come down. That’s led to low the lowest gas price I think since January. What’s sort of driving those two moves?
01:47 Speaker B
Right. Well, with respect to oil, you have the situation with uh Russia and Ukraine. Uh today, President Zelensky of Ukraine is going to be meeting with President Trump. He had a conversation yesterday with President Putin. So if you do start to see Russian oil flowing more freely, then that would sort of go in line with the over supply that the market is expecting. And the market analysts are expecting that next year, you’re going to see oil prices that are lower because of an over supply in the market. You have OPEC plus that’s also increasing its supply.
02:22 Speaker B
With respect to Bitcoin, you’ve had a lot of leverage calls. You’ve had uh long liquidations. Uh you had the mini crash uh just last Friday uh after President Trump announced those uh threats, uh tariffs against China. So, gold Bitcoin has been a little bit of a head scratcher for the Bitcoin bulls because this is supposed to be a sort of a stellar month when it comes to Bitcoin. And the Bitcoin bulls are expecting that you would see some rotation going from gold into Bitcoin, uh with that that rotation being sort of a historical rotation that uh gold front runs Bitcoin. So, it has definitely been acting like a risk-on asset and investors have been fleeing from that risk-on asset.
