JP Morgan: "Gold is money, nothing else."
JP Morgan's famous phrase "Gold is money, and nothing else" is quite open to interpretation.
Just like Bob Marley's famous song such as: "No woman no cry." I wonder if he tried to say “no women, no tears” or “my woman don't cry”?
If we go back to JP Morgan, the comments are between “gold money, nothing else” and “gold money is everything else”
Our readers will remember, we wrote in a recent article titled “Ecstacy of Gold”, looking at a wide range of gold, why we had the direction upwards.
The movement we waited patiently for a long time took place yesterday. The price of ounce of gold has risen to the level of $ 1,815 by almost waving his hand, reaching the level of $ 1,795 – 1,800, which we consider as an important and critical level, which is the peak of 8 years.
In technical terms, upward and ultimately 2011 It is anticipated that the $ 1,920 level (summit) tested in 2016 can be seen again this year (see graphic).
It is worth noting that the strong rhetoric of Clarida, one of the FED Presidents, behind the break that happened yesterday.
Clarida said the yield curve control is also on the table. FED, which determines short-term interest rates, allows long-term interest to occur in the market with the direction it draws. For example, short-term interests are now close to 0%; 30-year bond interest rates are at the level of 1.50%. In order to give more support to the economy, long-term interest rates may need to be lowered further. A strategy in this direction caused the dollar to depreciate in broadband yesterday.
The depreciation of the dollar was not only against gold yesterday. As silver rose sharply, the EUR / USD parity that we watched closely entered the pot to make the expected move. With the loss of the interest advantage of the dollar, we have moved into a long position on the front in EUR / USD with the target of 1.1650 – 1.17. (See chart).
It is worth noting that while the dollar is losing value in the world, it is in USD / TRY 6.86 level waiting. In another aspect, in an environment where parities go up, the Turkish Lira is losing value on a basket basis. While the EUR / TL has reached the level of 7.80, the price of gold has exceeded 400 TL in grams (see graphic).
In the stock markets, despite the increase in the number of cases, the pursuit of returns created by ultra-loose monetary policies remains the main argument for investors. It is. Yesterday, while the Akıl indices completed the night with a value increase of around 1%, we see that optimism has also moved to the new day. The day-to-day Asian markets are seeing a 1% increase.
While election polls from the Akıl point out that Trump is unlikely to be chosen against his rival, Biden, we estimate that Trump will further increase his aggressiveness with a last effort.  We did not see any new development inside. While the agenda is getting warmer in opening Hagia Sophia for worship, we expect Borsa İstanbul to continue its upward change in the financial markets, the 'vegetable life' of USD / TRY and the depreciation of TL on the basis of the basket.
today, as every Thursday, the Akıl jobless claims, while in Turkey will follow its securities report with the Central bank's money and banking statistics.
we have seen a significant level of technical means 1.795 to 1.800 USD / ounce (peak of 8 years) was very comfortable yesterday with dollar weakness. Even though there are intermittent interruptions (profit sales), we think the direction is up to $ 1,920.