Gold

[Daytr]

As posted on HC I think we will see a continuation of the weakness in equities we saw on Friday & a correspondingly good week for gold. Good start to the evenings trade with gold at $1309.

[Bobcat.]

Look for a reaction to this week's quarterly USA GDP figure coming in lower than expected...almost certain IMO. Of course, it will also be later revised downward, as last quarter's was. Lies, lies and USA statistics.

Tonight's Tuesday night, which could easily see a lift to the price of precious metals, with gold leading the way as usual but gold looks to be in a narrow trading range. The big players don't tend to trade until we move to oversold or overbought conditions, and so I'm picking that movements this week will be fairly minor. Trading to it.

BC

[Daytr]

Maybe BC, I think it could be quite a big week for gold. I see we are at $1312 already, not a bad start.

[JBmurc]

Veteran fund manager Han K. Lee says inflation is about to bite, leaving global sharemarkets set for the biggest tumble since the global financial crisis.
Prime Value Asset Management, the firm Lee co-founded with chief -executive Y. Yong Quek in 1998, is again encouraging shareholders to think about keeping more cash on the sidelines.
America has over-borrowed and overspent, while China has over-borrowed and over-invested, Lee says.
“Neither strategy is viable in the long term, so something has got to give.”

Lee’s investment team is looking for new ways to skew their Australian equities mandate towards companies with earnings underpinned by real assets, such as infrastructure projects and gold.
Lee and Quek won the loyalty of many of their current clients by advising them against piling more money into shares ahead of the start of the global financial crisis in 2007.





http://www.smh.com.au/business/marke...707-zsyj6.html

[Daytr]

Yep seems like a pretty smart guy JB, I've been seeing a bit from him lately. Another sign that the equity markets are about to run out of steam was two takeover offers made on the NZX so the M&A bug is spreading. All markets basically behave the same way as they are driven by human behavior...
Property markets start bubbling in major centers & typically takes a few years to spread to the provinces & by the time it does it usually means the run is done or near to it. Its also the equivalent of the saying 'when the taxis drivers start yelling, its time to start selling'.

Gold kicked things off strongly last night but failed to kick on. US equity markets were again on the back foot albeit only marginally. I expect Yelled to emphasize that interest rates will stay at zero for longer than anticipated, whilst trying to inject some confidence in the economy, despite what the recent data is saying. What will be interesting is, will the markets buy it? The message is getting tired & the Fed has run out of ammunition. What next? Interesting times.

[Skol]

Sell your gold and silver.

Gold's best contrarian warning, Peter Schiff says gold is poised for a big move higher this week.

http://www.cnbc.com/id/101876995

Another super-contrarian warning is Marc Faber who's warning of a stockmarket crash. He's been banging on about it for 3 years, he never gives up, maybe in a few years time he'll be right.

http://www.cnbc.com/id/101873308?trk...tack:topnews:7

Might have to top up with a few shares.

[Daytr]

This is a long, but great read even if you don't agree with everything Jim Grant says.

http://www.forbes.com/sites/stevefor...ith-jim-grant/

[Daytr]

Obviously a pretty strong US GDP number, yet equities are pretty much flat. Not a great sign imo.

I'm in pretty poor company. The man probably more than anyone else responsible for the financial meltdown is also calling for a correction....

http://www.reuters.com/article/2014/...0FZ29X20140730

[Daytr]

Whoops had put this on the wrong thread. Up $2 already. ;-)

Well it'll put it out there, again! Its Thursday night & I expect to see a rally. Fed & GDP is now out of the way & I also think we will see US equities under pressure.

[Daytr]

Well I was half right.... European & US equities markets hammered . Gold off around 1%. We saw a similar move last time there was a sharp move lower in equities as those who had hedged their long equity position with a long gold position have to sell their hedge as they sell out of equities. I should have remembered this from the last big move. What I do remember is gold did respond & break free of equities shooting higher after a couple of days of trading in tandem & I wouldn't be surprised to see the same here.