Gold’s current price surge suggests it’s entering a parabolic advance. SOFR in freefall. The Japanese Yen carry trade is back on.

Got gold? 👇🏼 pic.twitter.com/LaVIokiWPx

— Kalani o Māui (@MauiBoyMacro) September 20, 2024

As of current price action, it is possible to define Gold as having entered a parabolic advance (in red). It is an easy mistake to take profits prematurely in parabolic moves. Previous bull cycles of Bitcoin are cases in point $GC_F #GOLD pic.twitter.com/jzLEMPcZaM

— Peter Brandt (@PeterLBrandt) September 20, 2024

New day, new all-time high for #gold futures#silver futures not doing too poorly, either pic.twitter.com/SYIvVsq2iJ

— Adam Taggart (@menlobear) September 20, 2024

SOFR drops after Fed funds rate is cut 50bps, and volume surges back up, nearing all-time high; the market isn't just going to be awash w/ cash, but drowning in it; friendly reminder, drowning is bad… pic.twitter.com/5mtLDjZHC8

— E.J. Antoni, Ph.D. (@RealEJAntoni) September 20, 2024

SOFR drops after Fed funds rate is cut 50bps, and volume surges back up, nearing all-time high; the market isn't just going to be awash w/ cash, but drowning in it; friendly reminder, drowning is bad… pic.twitter.com/5mtLDjZHC8

— E.J. Antoni, Ph.D. (@RealEJAntoni) September 20, 2024

 

When SOFR drops, it means the cost of borrowing cash overnight, secured by U.S. Treasury securities, has decreased. This can signal:

• Increased liquidity: More cash is available in the overnight lending market, reducing borrowing costs.
• Lower borrowing costs: Companies and financial institutions can borrow money more cheaply, which may boost lending and economic activity.
• Easing monetary conditions: It can reflect looser monetary policy or greater investor demand for safe assets like Treasuries.

A drop in SOFR often impacts loans, mortgages, and derivatives linked to it, leading to lower interest rates on these financial products.

The Japanese Yen carry trade is back on 🥳
Basically firms borrow from Japan to pump U.S. markets as the Yen plummets.

View this as the countdown to chaos when Japan decides to intervene again. They can crash markets whenever they're given the order from Jamie Dimon. t.co/OTuCFQJjfe pic.twitter.com/yXAZJTYCO3

— Financelot (@FinanceLancelot) September 20, 2024