Thread by @Sanju_Verma_

So biggest casualty of #Fed warning on #US #economy y'day, was #Gold,which dropped 3% to $1951.90 an ounce,within minutes of #FedMinutes

Silver too fell below $28

Rout was not limited to precious metals--#Nasdaq sold off despite #Apple hitting $2 trillion market cap

#Covid_19

#CrudeOil whipsawed in tight range with #WTI at $42.83

#Fed's take on economic downturn was nothing new&yet markets collapsed

Only asset which saw aggressive buying was US #Tbills,with 10 yr #bond #yield@ 0.665% Vs previous close of 0.685%

#Dollar had its best day in 2 months

So what does y'day's frenzied buying in #bonds indicate?Is the #RiskOn trade over?

Well,not quite--With $9 trillion of excess global #liquidity sloshing around due to coordinated Central Bank rate cuts,since #Covid_19, equities will move up,albeit with severe bouts of volatility

While #RiskOn has been global &local trend for last many weeks, y'day's #Fed minutes brought focus back to underlying global economic weakness

Strength in #DXY shows,Dollar weakness may be over&there could be renewed safe haven buying leading to some surge in #RiskOff

#Covid_19

In a nutshell,if buying in #RiskOff US bonds continues,#BondYields will fall,Bond prices will rise&that may take sheen off Equities' rally in S&P,Dow&locally in #Sensex& #Nifty,but since excess liquidity is strong,stocks will continue to rally,overall,albeit with more volatility

A stronger #Dollar due to steady surge in #RiskOff trade,would eventually lead to fall in global #CrudeOil prices&precious metals too,as both are priced in Dollars

Which means #Rupee&other currencies could again see #depreciation,which will however be offset by lower #Oil prices

Usually,surge in #RiskOff trade should ideally lead to higher #Gold&Silver prices as these are considered safe bets,but it does'nt always work out that way

Gold&Silver will eventually be dictated by #DollarIndex-Last 2 months,Gold rose,only because #DXY fell,from 96.5 to 92.3!