Really Moosie, Chinese retail customers covering shorts? Where do you get this stuff from!
Printable View
Really Moosie, Chinese retail customers covering shorts? Where do you get this stuff from!
Unlike last week gold continued its bounce from Friday up circa 0.5% & 2% in the last two trading days, now siting back above the 200DMA. Equities were marginally higher with again Apple being the draw-card as more & more money pours into the cash rich tech stock. Apple could be viewed as a safe haven & perhaps is a reflection of where people want their money in a highly valued market. Gold should have a crack at $1320 from here, with the Ukrainian crisis dragging on & intensifying of late. The key card Putin holds is that Russia supplies 50% of the gas to Europe & its all well & good for the US to put the financial squeeze on Russia as the US is pretty much insulated, however I'm sure Merkel & the like don't feel the same. Gold needs to hold above $1280 support until the next seasonal physical demand pick up, which we should see again in June & if so should act as a platform to see it move back toward the higher end of the wider range of around $1400 later in the year. Cheers Daytr
Yes and the interest rates in that period Skol...... 15-20% ... compare that to today ..,as your've said many a time Gold doesn't pay a yield..
low to zero rates isn't going to entice many in the phyz PM market to sell for low returns ....that and the fact US employment numbers are at 1978 lows doesn't bode well even though they have pumped more money into keeping it all afloat...
http://www.nzherald.co.nz/world/news...ectid=11250894
More bad news for the USA.
Gold disappointed overnight as the US weakened across the board (except for JPY) & US equities were also down. In such an environment your would expect gold to trade higher, however what I have noticed of late is when equities have had a down day after a bit of run, gold has also traded lower. Gold is used by some as a hedge against long equity positions, hence if you reduce your equity long, you also need to reduce your long gold hedge & I suspect this is what we have seen overnight or a contributor at least to gold's non-performance. In saying all that what I have also noticed is if there are two or three down days in equities in a row then gold builds momentum, (as you would expect) & new positions are taken as the fear barometer rises a little. US equities at this point are very vulnerable to a pull back in one stock, Apple. A lot of money of late has poured into the stock pushing it back over $600 (well at least until last night) chasing dividend, an announced share buyback & a cash position most small to medium sized countries would be proud of. Is Apple vulnerable? Probably not at this point, however remember Nokia? Who owns a Nokia now? What is vulnerable, is the money that has rushed in recently & I would suggest long after the horse bolted. This is what you see in bloated markets, money being squandered by ridiculously priced takeovers generally driven by ego & fee driven bankers & a market buying purely as its going up with no real fundamental driver. We should know, we saw it in the gold market only three years ago. As mentioned the JPY gained against the USD, again a sign of risk being taken off the table. A stronger JPY does not bode well for the Nikkei today. Cheers Daytr
As suspected Nikkei down 2% in early trade. Suspect what we saw last night & today in equities will be the start of another pullback similar to what we saw a few weeks ago. Gold should do well if this comes to fruition. First hurdle $1320 & then the nearby $1330 level where gold failed last time.