I think Japan's "terror" was more related to a collapse of the U.S. stock and bond markets. The knuckleheads are the only ones buying this shiat and if they ever lose control of the dollar and gold they are in deep gumpshi. So Friday was a kamakazi attack on dollar shorts.
"[...] buying interest in gold; is it normal to see such a selloff on news like this?"
like everything about gold this year, i think u can still say that much of these moves are currency related. the dollar rose from 84.75 to about 87.25, which is more than +3%. over the ame time, gold (in dollars) was down a little over 3%.
Dan, I've only followed gold over the past year or so, but I figure that a terror alert by Japan should have caused some buying interest in gold; is it normal to see such a selloff on news like this? ===============================================================
Hi Joe Bob, Is it normal? Yes, but only if you consider these to be normal circumstances. <gg>
What I think the unexpected Japanese terror alert accomplished, and which I believe to be their intent, was to cause the Yen to plummet, which in turn precipitated the unwinding of some of the massive short Dollar/long Yen and short Dollar/long Euro positions.
In my view, it was the rise in the dollar vs those currencies that broke the back of yesterday's gold market.
From an earlier post:
Dollar Logs Biggest Weekly Gain versus the Yen in 5-years
Two Japanese officials -- vice minister for international affairs Zembei Mizoguchi and Finance Minister Sadakazu Tanigaki -- tried jawboning the Yen lower today. Mr. Mizoguchi and Mr. Tanigaki might have had some success at striking fear into the hearts of Yen longs on their own. However, what really clobbered the Yen today was Japan raising its terror alert to its highest level for the first time since March 2003.
As repulsive as it is to make light of ‘terror alerts’, the conspiratorial mind cannot help but wonder whether or not Japan has finally found a way to stop the Yen from appreciating. To be sure, today’s alert out of Japan did more damage to the Yen than the $7 Trillion the government sold in Yen in January, and the $20 Trillion the government sold in Yen in 2003."#msg-2427944
Imo, this too shall pass and an excellent buying opportunity will present itself in the next week or so. This PM bull is a long way from over......... mark my words!
I lightened up a portion of some of my long term gains positions and while I intend to continue doing so, I'll be looking to replace those shares (and then some) in about a dozen or so of my favorite US traded miner/explorers.
If anyone would care to see my shopping list, all you need do is ask. While none are surprises, I think all are future doubles or better.
My Canuckistanian juniors are not for sale....... <vbg>
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