It seems that manipulation of the gold fixing is over and done with - exposed by various lawsuits. Nevertheless, a noticeable price slide still occurs regularly in early New York trading - price behavior that is reminiscent of the time after August 5 1993, when manipulation of the gold price could first be detected.
While being capable of imagining a 'black swan' event implies its non-existence; given the level of groupthink consensus agreement that the bond bull is dead, inflation is back, central banks are maxed out, and global fiscal stimulus will save the world, we thought a look at some of the more unsusual, unpredictable expectations for 2017 was worthwhile...
While the market, and various pundits and economists have been mostly focused on the still to be disclosed details of Trump's infrastructure spending aspects of his fiscal plan, "one of the least talked about but possibly most important tax shifts in the history of the United States" is, according to DB, House Speaker Paul Ryan’s and President-elect Trump’s “border tax adjustment” proposal.
Deutsche Bank shares are sliding this morning after headlines from CNBC reporting a settlement is close (as soon as Wednesday) with the US Justice Department over mortgage fraud. With analyst expectations/hopes in the $2 to $5 billion range (against the initial $14 billion fine), reports say the bank is set to pay "less than $14 billion" which has perhaps spooked investors with its uncertainty.
Global markets begin the last full week of trading of the year in subdued fashion, with U.S. equity futures rising 0.1%, to 2,258.5, European shares decline, halting two straight weeks of gains, and Asian shares hitting a four-week low.
As it goes in silver, so it goes in gold. In London at least. In a bid to have UBS reinstated as a defendant in a London Gold Fix antitrust lawsuit, plaintiffs documents submitted to a New York Court last week include explosive chat room transcripts of UBS and traders from different banks encouraging each other to “push,” “smack,” and “whack” gold prices.
"The next very big catalyst for this market will be the Trump/Ryan tax reform plan and how it makes its way through Congress. Elevated political expectations are the single biggest risk for the tape and once the year-end chase rally euphoria wears off this will likely weigh on sentiment."