Gold

[Daytr]

Yeah funny old night though.
Gold definitely wanted to test lower first & still closed below $1280.
I still favour much higher gold at least in the short term, but need to clear $1280 & $1300 first.
Plenty of tinder out there, such as Greece, Russia buying, Oil crash/debt crisis which I still think is yet to come home.
Spain is also one to watch in regards elections & EURO turmoil & obviously a much bigger fish than Greece.
Elections towards the end of the year & the left seems to be gaining popularity.

[JBmurc]

AUD GOLD up $35 ....after rate cut $1669oz Aussie gold producers making a mint

[Daytr]

A$1675 now! I was sooo close to shorting the Aussie today to! Too may would've, could've, should've moments for me lately! Doh
Gold back above $1280 as well which is good to see

[Aaron]

Pardon my ignorance, especially as I am speculating on gold miners but my understanding was that gold held its value in inflationary times. What about disinflationary times or outright deflation? It is looking like the western world is following the Japanese path so don't expect inflation any time soon.
Or is it insurance against the next round of QE or the one after that destroying peoples faith in world currencies.

[skid]

Deflation is bad for any assets,gold included. If deflation raises it ugly head -cash is king (if you can get at it)---(which raises the question-''is it better to have deflated gold in the hand-or no access(or only a % if banks do a ''haircut'') to your inflated cash.

In general,the ones who benefit from inflation are those with cash on hand--who can then buy shares,houses,gold etc. at bargan basement prices.

This is how the early Kennedy got rich (it helps if you are a criminal and have access to stashed cash)

[Daytr]

Well it depends what chaos the deflation inflicts.
One could argue that gold rising in USD terms is a sign that all currencies are losing their value.
Gold benefits from uncertainty and there is plenty of that about, particularly relating to Europe, Russia & energy.
If debt has been accumulated off higher asset prices, servicing it becomes a lot harder of lower asset prices.
W are yet to see the debt blow up relating to energy imo.

[babymonster]

hows the POG looking today.. seems didn't do much after China cut its rate...

[Daytr]

That's because China didn't cut interest rates.
They cut the ratio of reserves banks need to hold from 20% to 19.5% to stimulate lending & growth.
Its something, but not huge.

[Daytr]

One word, thumped !
Opportunity?
Could be, but best be patient after such a move. $1220 or even $1200 might be better areas.
All about the NFP of course & the huge revisions.
Russia still buying, Chinese NY buying probably mostly done, Europe/ Greece still an issue.
I'm not seeing gold falling out of bed in such an environment.

[babymonster]

Chinese import 25% less