Why GOLD got DESTROYED today

In this video I’m diving into why gold went way down today and why the yellow metal always seems to do the opposite of what it should do when new economic data comes out.

Never make any investment decisions based on my videos. This sector is very risky and this should not be considered investment advice. Always do a lot of your own research before investing your hard earned money.

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A lot of people buy gold as an inflation hedge and to hedge against government stupidity and money Printing and it’s to have something real have something you know is going to hold its value to maintain wealth now some people may buy it as a speculation at times but

Overall its goal is to maintain purchasing power and part of that is an inflation hedge so we expect that when inflation goes up well so does the price of gold however this morning the gold price was up about $10 an ounce and then the inflation data came out and it was

What they call hotter than expected inflation rate was higher than was expected and what happened to the price of gold right after that well the Algos came in and started selling the heck out of it and at one point it was down about $40 from the high now what good is in

Inflation hedge if it goes down when inflation is higher than expected Unfortunately today we’re in this weird world where all the big Traders are trading stuff based on what they think the Federal Reserve is going to do next so when inflation is higher than expected the price of gold goes down

When the price of gold should be going up and then on the other hand when inflation is lower than expected the price of gold goes up when it should be going down now that doesn’t really make any sense because when you have an inflation hedge it should go up when inflation is

Higher however because these big Traders are looking at what the FED is going to do they see okay inflation was higher than expected so now the FED could raise rates or now the FED will wait longer before they start lowering rates and since rates are going to be higher

Than we previously expected we have to sell gold because High rates are bad for gold that’s that’s what they’re thinking when creating these algorithms and the opposite is true when inflation data comes in lower than expected they say okay we should buy gold we should have the algorithms buy gold because the FED

Is more likely to cut rates or leave rates lower for longer so it’s all backwards the price of gold should go up when inflation is higher and the price of gold should go down when inflation is lower but because the markets are forward-looking and they’re looking at what the Federal

Reserve is going to do with interest rates that’s basically all that matters in today’s world at least in the short-term trading now I mean you go look at a longer term chart and you can see uh gold going up pretty steadily over the last many years and what has

Happened in the same time to the dollar dollar has gone in the opposite way the value of the dollar has gone down and down and down pretty steadily over time so does this mean that gold is worthless as an inflation hedge because it goes lower when inflation is higher

Now I don’t think so when you hold an ounce of gold you have something real you have something that’s going to maintain main its purchasing power and when we step back away from these daily moves and we look at the longer term charts and we look at what’s happening

In the longer term gold is maintaining its purchasing power gold is going up when the dollar is going lower just on these days when we see inflation that’s higher than expected or lower than expected gold does the opposite of what it should do however in the longer term

Gold is doing exactly what it’s supposed to do preserving your purchasing power