Gold Acrobatics Resume: $12 Spike In Minutes
The acrobatics in the gold market resume, with ongoing jagged moves in spot indicative not of normal buying or selling but far more fundamentally wrong with the market itself. Gold just jumped $12 in the span of minutes, on what appears to be "reverse liquidation." This is happening as Bernanke notes he is sticking with Keynes and thinks a return to the gold standard would be a mistake.
And a quick snapshot of the market where implied correlation is once again approaching unity, and everything is trading on the back of everything else. Apparently the catalyst was a "better than expected" existing home sales number, which came at 5.37MM on expectations of 5.1MM, still a material decline from the prior 5.66MM but the first piece of good news out of the past 18. Of course, the fact that ever more houses are being "sold" at distressed prices and that banks may finally be rotating the shadow inventory is completely lost on binary speculators. So the market thesis now is we may just have a slow down in the double dip based on accelerating job losses (see today's initial claims for the ignored data).