What Bitcoin Adoption Means for Gold

Housekeeping: Good Morning.

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***Bitcoin soars, Gold and Silver diverge again, Oil rallies***

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Contents

1. Current Prices

2. Yesterday’s Activity

3. Data Due

4. News

5. Markets/Metals Commentary

6. Market Gameplan

7. Attached: Inflation is America's Choice Now

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Yesterday’s Activity:

• Precious Metals- respond to dollar weakness implies buying is still there. A catalyst is needed to make them lift offers and drive this higher. Silver is creeping higher again

• Oil- yesterday’s analysis was spot on. Algo finished buying, VWAP took hold. Fresh buying stepped in, likely CTA shorts covering

• US equities- new ATHs

• Bonds- yields continue to rise

• DX- starts strong, finishes weak

• Crypto- There you have it. The era of BTC as a real asset choice has arrived it seems

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Week’s Data:

• MONDAY, FEB. 5 9:45 am S&P final U.S. services PMI Jan. 52.5 -- 52.9

• TUESDAY, FEB. 6 Fed speakers all day

• WEDNESDAY, FEB. 7 More speakers, Consumer credit

• THURSDAY, FEB. 8 8:30 am Initial jobless claims

  US Treasury Secretary Yellen at the Financial Stability Oversight Council 09:00EST. Orphaned industries, Regional Banking

• FRIDAY, FEB. 9 8:30 am CPI seasonal factor revisions

Full calendar¹

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News:

News Links

NOTABLE HEADLINES

• Donald Trump wins the Nevada Republican caucus with 25/26 delegates appointed thus far.

• US President Biden's administration is said to consider restrictions on China EVs to address data security concerns, while the move would be an additional hurdle beyond tariffs to keep out Chinese smart cars, according to Bloomberg.

• BoJ Governor Ueda said the chances are high for accommodative conditions to stay even if negative rates are abandoned, while he added they will pay heed to the health of the balance sheet if exit from stimulus policy draws near.

GEOPOLITICS

• Russian President Putin said Russia has not yet achieved its goals in Ukraine and suggested the US should encourage Ukraine to resume talks, while he was said to sincerely believe that Russia has a historic claim to land in Ukraine.

• US President Biden said the conduct of Israel's response in the Gaza strip has been over the top and he is pushing very hard now to get a sustained pause in Gaza.

• US Central Command said its forces conducted seven self-defence strikes against four Houthi unmanned surface vessels on Thursday and conducted strikes against seven mobile anti-cruise missiles

Some headlines via NewSquawk

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Market Gameplan (Charts):

• Gold-

• Silver-

• Oil-

• Stocks-

• BTC/ETH-

• Bonds -

Have a good day

Exclusive: Inflation is America's Choice Now

• MONDAY, FEB. 5 9:45 am S&P final U.S. services PMI Jan. 52.5 -- 52.9 10:00 am Chicago Fed President Austan Goolsbee TV appearance 10:00 am ISM services Jan. 52.5% 52.0% 50.5%

• TUESDAY, FEB. 6 12:00 pm Cleveland Fed President Loretta Mester speaks 1:00 pm Minneapolis Fed President Neel Kashkari speaks 2:00 pm Boston Fed President Susan Collins speaks 7:00 pm Philadelphia Fed President Patrick Harker speaks

• WEDNESDAY, FEB. 7 8:30 am U.S. trade deficit Dec. $62.1B $63.2B 11:00 am Fed Gov. Adriana Kugler speaks 11:30 am Boston Fed President Susan Collins speaks 12:30 pm Richmond Fed President Tom Barkin speaks 2:00 pm Fed Gov. Michelle Bowman speaks 3:00 pm Consumer credit Jan. $15B $23.7B 3:00 pm CBO briefing on budget and economic outlook

• THURSDAY, FEB. 8 8:30 am Initial jobless claims Feb. 3 220,000 224,000 10:00 am Wholesale inventories Dec. 0.3% -0.2% 12:05 pm Richmond Fed President Tom Barkin speaks

• FRIDAY, FEB. 9 8:30 am CPI seasonal factor revisions 1:30 pm Dallas Fed President Lorie Logan speaks

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