To understand how the market determines the price of gold, we must first dismiss the economic principle of SUPPLY & DEMAND. While supply and demand forces are factors in the short-term price movement of gold, they do not really factor all that much over the longer term...
If you are a stock investor, you should be terrified. The most disconcerting words have been uttered by the one person capable of changing the whole dynamic. After spending so many years trying to recreate the magic of the “maestro”, Ben Bernanke in retirement is still at it.
European shares are lower, pressured by disappointing results by Deutsche Bank and ending a six-session gain, as Asian equities and S&P futures were little changed after a record-setting rally in world stocks which pushed the MSCI World index to over $50 trillion yesterday, fizzled after Trump released unconvincing tax cut plans prompting traders to "sell the news" while caution set in as the ECB met.
"These were the cowboys of Wall Street," said Peter Henning, a law professor at Wayne State University in Detroit. "If you were a bond trader, you could almost do anything you wanted, and not anymore."
After two days of back to back triple digit gains in the Dow for the first time since the election, overnight the torrid rally has faded, with European shares and U.S. stock futures little changed ahead of Trump's big unveil of his much anticipated tax cut plan as investors seek new impetus for a flagging relief rally.
World stocks hit a new record high on Tuesday, with investors still cheering Macron's victory in the first round of the French presidential election, supported by speculation about U.S. tax reform and the overnight report that Trump has conceded on the border wall, eliminating a government shutdown as a potential risk.
Would the French parliament go along with relaxing labor laws, cut business taxes? Would the parliament allow a referendum on the Euro? If the answers are no and no, then what’s changed? The real battle over the survival of the eurozone will take place in Italy, not France.