Gold surged 3% on the day (back above its 50DMA) - its biggest daily rise in over 13 months - as it appears weak macro data (CFNAI and home sales miss) only served to spur the overnight gains on un-Taper talk and short-covering. Silver's 5.2% gain is it second largest of the year pushing it back above $20. The USD slid 0.5% on the day (JPY strength notable) and WTI fell back modestly to around $107 (with Brent outperforming for a change). Treasuries and stocks tracked amid low volumes in a narrow range ending the day practically unchanged (after the S&P failed to test 1,700 intra day as Europe close). VIX closed down 0.25 vols (well off opening highs) at its lowest close in over 3 months on one of the lowest volume days of the year for stocks. Credit markets faded notably into the close.
Quite a day for gold...
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In the last few weeks since Ben and his team start ed walking back his 'oops' on Taper-talk, Gold has risen a dramatic 11.1%. During the same period, since 6/27, the S&P is up 5.1%, the 30Y bond is unchanged and the USD is down around 1%.
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The USD was the other market that moved notably today...
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Credit markets were notably weak into the close...
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Gold and the USD the big movers...
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MCD removed 20 points from the Dow's performance on the day which ended +2pts; The S&P 500 gained 3.4 points for another new all-time high...
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But volume was abysmal as stocks limped along in a narrow range...
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Brent outperformed WTI on the day - lifting the spread back over $1...
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VIX closed at its lowest in over 3 months (after some apparent hedging demand as we opened)...
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and it appears the opening reach for a hedge was shorts caught that were forced to cover their pre-weekend bets. We end the day more balanced...
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Charts: Bloomberg