Mainstream media is blaming the weakness in gold on the fact that a "slew of positive data" from the EU 'proves' there is no crisis. However, if that data is so positive - and proclaimed so by EU's Ollie Rehn, then why did European stocks drop the most in a month. JPY strength continues to a six-week high against the USD and testing recent highs against the EUR as we posit that equity (and credit) weakness is much more about Tapering on the US deficit than any other fundamental reason. Of course, EU bonds managed small gains (illiquidity is extreme this week) even as EU stocks dropped almost across the board.
Worst day in Europe in a month...
[2]
European stocks all legged down as the US data hit...
[3]
Charts: Bloomberg