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Golden week
EagleEye
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OK, it seems that the drop in gold on Monday was due to the strength of the dollar against the Pound. The Pound dropped due to the realization that there is going to be a "Hard Brexit". The sharp drop of the Pound on Monday may have been precipitated by a "fat finger" trade. The Pound is now at its lowest value ever. I can see that stocks could be hurt by Brexit, except that the rising Dollar helps British stocks too.
Also China had their "Golden Week", where everybody goes on holiday at once. Is that an influence? Will they buy gold on Monday.
Where is the fundamental problem that should make gold stay lower or go lower? Is it overvalued right now? I'd like to hear your thoughts.
Also China had their "Golden Week", where everybody goes on holiday at once. Is that an influence? Will they buy gold on Monday.
Where is the fundamental problem that should make gold stay lower or go lower? Is it overvalued right now? I'd like to hear your thoughts.
Rick Snow, Eagle Eye Rare Coins, Inc.Check out my new web site:
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OK, it seems that the drop in gold on Monday was due to the strength of the dollar against the Pound. The Pound dropped due to the realization that there is going to be a "Hard Brexit". The sharp drop of the Pound on Monday may have been precipitated by a "fat finger" trade. The Pound is now at its lowest value ever. I can see that stocks could be hurt by Brexit, except that the rising Dollar helps British stocks too.
Also China had their "Golden Week", where everybody goes on holiday at once. Is that an influence? Will they buy gold on Monday.
Where is the fundamental problem that should make gold stay lower or go lower? Is it overvalued right now? I'd like to hear your thoughts.
the possible fat finger was overnight thur-fri
CME Fed Watch Page
note the change in probability down from 14.5% Thur to 8.3% Fri
Economic numbers may hold the dollar's gains back and gold at least steady.
$Bank Index 1 week chart
Where is the fundamental problem that should make gold stay lower or go lower? Is it overvalued right now? I'd like to hear your thoughts.
I think gold failed to rally above 127x and there is the possibility that the economy will get better enough to raise rates soon. Plus there is, at least temporarily, less fear of Deustche Bank failing. Plus, the us banking system may improve with higher rates.
Now that it has sold off hard. It is a matter to see if it can hold these levels or the lower $1200 levels in the coming weeks.
If it goes up above 1500 for any reason, I will sell some bullion. If it goes below 1000, I will buy some.
In between, I will generally be sanguine, and perhaps make the occasional bland remark on various PM forums
Liberty: Parent of Science & Industry
Where is the fundamental problem that should make gold stay lower or go lower? Is it overvalued right now? I'd like to hear your thoughts.
I think gold failed to rally above 127x and there is the possibility that the economy will get better enough to raise rates soon. Plus there is, at least temporarily, less fear of Deustche Bank failing. Plus, the us banking system may improve with higher rates.
Now that it has sold off hard. It is a matter to see if it can hold these levels or the lower $1200 levels in the coming weeks.
I agree with you if we break the $1200 before the hike then we will test the $1000 mark
Interesting that spot gold's daily candlestick body on the June Brexit day rally opened/closed at $1267-$1314. And last Tuesday's crash the open/close also covered the nearly identical range of $1268-$1311. A nearly perfect unwind of June's Brexit-mania. Probably just coincidence that this was accomplished with the Chinese markets on a 1 week holiday.
Knowledge is the enemy of fear
I know, but I'm not gonna say.
come on lay it out, say it, say it
Sheer coincidence?
I know, but I'm not gonna say.
Dude Knows the Future, of course ain't gonna say what it is
Liberty: Parent of Science & Industry
I know, but I'm not gonna say.
Dude Knows the Future, of course ain't gonna say what it is
Indeed. It can be easy to see things when we know what we're looking for.
Knowledge is the enemy of fear
11.4% chance for Nov hike, 66.3% chance of at least a 25 bps hike in Nov