Gold Pops, Dollar Drops As Rate-Hike-Odds Slide After Fed Minutes

Fed rate-hike odds for December are lower after the Minutes (down from around 80% to 73%) as Fed officials' concerns about non-transitory low inflation sparked a dovish drop in the dollar and pop in precious metals...

As a reminder, since the end of Golden Week, the post-FOMC trends have reversed...


And today's Minutes are extending them...


As the dollar index continues to trend lower...


ReturnOfDaMac Cash2Riches Wed, 10/11/2017 - 16:09 Permalink

What a maroon!  The FED has unlimited FRN bullets.  They will print infinite quantities of paper from thin air, you will accept it for your hardest work, your goods and your services. And you WILL like it.  The few real traders and especially the great algo's know it, thats why stocks only.go.up.  Rocks make good jewelry, temporary emergency funds, and exceptional paperweights.  But to get rich, you have to BTFD.  Sell rocks buy stocks.

In reply to by Cash2Riches

HRClinton NoDebt Wed, 10/11/2017 - 15:37 Permalink

ZH IBID: "Gold pops a galactic $20, in a CB manipulation sort of way. Not in a Crypto sort of decentralized way".p.s. A dirty little secret that you just won't hear on ZH: I know of one CFP who likes to get clients to "invest in gold". Only thing is, he makes much bigger margins by using their cash to speculate on BTC.Not illegal, but unethical as hell, and how Buffet started (by own admission).Moral: even those who come "in the name of gold" are anything but 'golden'. Scammed everywhere, especially where simple, good people can be had with sweet whispers of gold. 

In reply to by NoDebt

dark fiber Wed, 10/11/2017 - 14:40 Permalink

I have noticed a very consistent pattern in gold.  It reverses the moment the Fed minutes are released.  If it is going up, it will drop.  If it is going down it will spike.  Regular as clockwork.

Justin Case Consuelo Wed, 10/11/2017 - 16:35 Permalink

Historically, people have understood money’s intrinsic value when they have been forced to, when alternative monies have been rendered unfit for purpose by persistent debasement. Negative real returns to cash, the inflation in various equity and credit markets, and investors’ “reaching for yield” suggest money’s transition from usable to unusable is already underway, if in a subtle and small way (for now). And if debasement to date has not dented debt ratios even slightly, the debasement of tomorrow will. Today, we see the intrinsic value of gold. And although we can’t know when, we think others will soon be forced to too.

In reply to by Consuelo

HRClinton dark fiber Wed, 10/11/2017 - 15:47 Permalink

Manipulated, yes, but at least it's predictable.Unlike damn decentralized crypto. All over the place. Who needs this nerve-wracking Price Discovery crap, when gold is a "solid" buy?;-)Sorry, I could not resist. I'm not poking fun at PM -- of which I have some stacked. Just having fun with some gold shills, who remind me of car or RE salesmen, with their BS lines -- who are conning honest, hard-working people of what little DI (Disposable Income) they have.

In reply to by dark fiber

Clowns on Acid Wed, 10/11/2017 - 15:18 Permalink

No mention of reverse QE? I guess that is just somehting the Fed ignores now. "Don't worry we have a handle on it...leaking back into the market".... as they monetize by retirirng the debt....whether it has matured or not. 

Consuelo Wed, 10/11/2017 - 15:28 Permalink

  Bitcoin at $5k?   No problem. Gold at $5k?  A dead cat's liver for dinner in a 40 degree abandoned shopping mall. There is a reason real money is being kept in a very tight range.    

adolphz Wed, 10/11/2017 - 15:33 Permalink

How does SHEPWAVE know what stocks and gold are going to do every day. I am positioned for next big move. I am thinking it will happen at tomorrow's open in Hang Seng and gold markets.

Sid Davis Wed, 10/11/2017 - 16:54 Permalink

In my view cyclical patterns are the driving force, and the FED and external events are just triggers to push what already is in progress:

Here what the combination of over 100 oscillations identified in the historic data will make the future for gold look like:


The oscillations are derived from the actual data through Oct. 5, 2017 so obviously both lines match fairly closely up to that point. The future should resemble the projected line, but certainly won't be a perfect match.