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Gold Tumbles Most In 6 Weeks As USD Surges
It appears JPY weakness (or generalized USD strength) is mirroring the demise of precious metals (and oil) this morning. Gold's 1.7% drop is the biggest in 6 weeks and drops the yellow metal to near 3-month lows. Treasury yields are up 5-8bps at the long-end. Troublingly, for the carry bulls, equity futures are not playing along with the JPY weakness.
Gold and JPY inseparable...
S&P fuitures bumped back up to VWAP but are not following through with JPY carry...
Charts: Bloomberg
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If I was one of you younger guys in your 20s or 30s, I'd be buying nickels. Nickels today are what silver coins were back in the early 6os. 75% copper/25%nickel. Last US coin of any tangible value whatsoever. You can bitch about storage problems all you want. Fact remains, it's a "sure thing" with no downside.
I was 14 when they discontinued silver coinage in 1964. Had I been 24, I'd have made a killing.
The markets always right. Prices are derived by the net buying and selling of BILLIONS of consumers, not some majical boogie man with god-like powers. Get over it.
I know exactly what the ECB has been doing...The FED HAS tapered if you take "tapering" to mean slowing down it's rate of asset purchases (which I do). The ECB's balance sheet has been shrinking for much of this year has past LTRO's have been repaid....new LTRO take up's will be far less attractive with EUR yields at these levels. I'm not defending the policies...it's madness...but my P&L doesn't give a shit about whether CB policies are insane...you have to trade to stay in the game for the big opportunities coming...
longer term gold looks bearish
http://bullandbearmash.com/chart/spot-gold-monthly-show-topping-downtren...
USD has broken out too
Russell's moved back markedly toward Unch., VIX's trying to bottom, is this the anticipated profit-taking from the volume-less vacation Tarantella?
(Why not gobble a plateful of TZA for an early lunch? So far, it's moving like a mouse through a python)
In the years to come many might look back on these low prices and regret not having taken advantage of them. Not me, I'm buying it whenever I can, and others are too.
Go ahead and laugh at us, you holders of fiat and worthless paper. Every time you yuck it up over gold-bugs and their 'hoards', another stacker gets his/her wings...
I'll always value a meal/place to stay/security but most of Golds value is a fiction that others buy into just like the Mona Lisa.
"I already got one".
Tyler, market analysis 101, a "surge" in any market is a move past resistance, which hasn't happend to the USD. Your headlines are starting to read like CNN.
I've been staring at Tyler's chart wondering why I'm seeing JPY strength and USD weaknes while Tyler claims the opposite
The chart is labeled backwards. Indeed, the Yen fell quite a bit versus the dollar today. Good eye.
Pefect! I love buying opportunities. Gold is on sale stock up!
I watched a show and you can basically pan, or gouge the hell out of the Earth, for one ounce of gold a day way up north.
And a couple more doom and gloom'ers see the light... 5 years to late. Markets up over 200% gold flat and clearly going lower.
"You'll see Charley Brown, NEXT year the great pumpkin will..."
Almost all settlements are in US dollars. You need to pay off your debts. All hail king dollar. bankers get to conjure them out of thinair. You gots to work for your dollars.
Edit: PS. One day the dollar will be worth less and the next day it will be worthless.