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Thursday, June 03, 2010 9:03:01 AM
GOLD up: ZH: Morning Gold Fix: June 3, 2010
Submitted by Tyler Durden on 06/03/2010 07:40 -0500
Courtesy of www.fmxconnect.com
Good recovery news in U.S. housing and automobile sales made for strong equities stateside yesterday. Gold didn't like this. But it wasn't a disaster. Usually good economic news triggers the fear that the fed will have room to tighten and squash a devout gold bug's inflation scenario. But not lately. Sure, futures sold off, but not much.
Today's activity will continue to be influenced by the "risk-on" crowd. Sell bonds, buy stocks, buy oil, sell gold, rinse repeat. But we see less and less people selling what they buy in the gold market. Sell side activity is more dominated by hot money liquidation than ever before. PIMCO's El Arian said their fund cut its gold holdings in half, citing the liquidation deflation drivers at play. That will not help today's activity either. We can only hope he is right. Our order underneath remains unfilled.
It seems that as soon as the sovereign default type buyers take a breather, the hyperinflation crowd steps in. Remember the goldilocks economy, where everything was just right? We might be entering the anti-Goldilocks phase of the economy where you just can't win.. Unless you own gold.
Where we once had soft landings, now we have stagflation. Where we used to be in the sweet spot, now we are between a rock and a hard place. The policy choices of our governments are constrained by their previous policy choices.
Asian markets followed through nicely last night reacting to the potential for revitalized US consumer demand. The US consumer as savior of global growth shtick was dusted off again. How hi can a dead cat bounce?
August gold was down 5.6 to $1217 per 100 troy ounces as of 8:00 AM EDT, this morning. The June U.S. dollar index was down .097 to 86.78. July platinum was up 7.2 to $1557.6 per 50 troy ounces. July Silver was down 8 cents to 18.235.
-Elizabeth Thawne
Submitted by Tyler Durden on 06/03/2010 07:40 -0500
Courtesy of www.fmxconnect.com
Good recovery news in U.S. housing and automobile sales made for strong equities stateside yesterday. Gold didn't like this. But it wasn't a disaster. Usually good economic news triggers the fear that the fed will have room to tighten and squash a devout gold bug's inflation scenario. But not lately. Sure, futures sold off, but not much.
Today's activity will continue to be influenced by the "risk-on" crowd. Sell bonds, buy stocks, buy oil, sell gold, rinse repeat. But we see less and less people selling what they buy in the gold market. Sell side activity is more dominated by hot money liquidation than ever before. PIMCO's El Arian said their fund cut its gold holdings in half, citing the liquidation deflation drivers at play. That will not help today's activity either. We can only hope he is right. Our order underneath remains unfilled.
It seems that as soon as the sovereign default type buyers take a breather, the hyperinflation crowd steps in. Remember the goldilocks economy, where everything was just right? We might be entering the anti-Goldilocks phase of the economy where you just can't win.. Unless you own gold.
Where we once had soft landings, now we have stagflation. Where we used to be in the sweet spot, now we are between a rock and a hard place. The policy choices of our governments are constrained by their previous policy choices.
Asian markets followed through nicely last night reacting to the potential for revitalized US consumer demand. The US consumer as savior of global growth shtick was dusted off again. How hi can a dead cat bounce?
August gold was down 5.6 to $1217 per 100 troy ounces as of 8:00 AM EDT, this morning. The June U.S. dollar index was down .097 to 86.78. July platinum was up 7.2 to $1557.6 per 50 troy ounces. July Silver was down 8 cents to 18.235.
-Elizabeth Thawne
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If you take anything I say as advice, you're crazier than I am.
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