Gold Bursts Through $1700 as Winter Sets In
In the face of the BLS Non-Farm Payroll report which looked for all the world like another 9-sigma event, funny how those keep happening the closer we get to the election, gold could not stand up to the onslaught of bullion bank selling as it looked like a number of the professionals decided to front-run their own equity selling later in the day.Â Sell gold and oil in the morning while the market is rallying then exit stocks once the cash has been raised in commodities, because who would want to be long anything this last weekend before the silly season is over and we can truly get back to doing what’s important; spending money we don’t have on the latest round of iGadgets to keep up the appearance of still being part of the middle class.
Looking at Apple’s stock price it looks like that’s what’s being used to buy the new iPad Minis; bringing new meaning to the termcannibalizing sales.
Gold retreated all the way to $1678 per ounce where it will have to hold if the bulls are going to stave off a further pull-back to $1650.Â This sets up a very low probability of seeing $1800 before December. But, again, given the number of black swans on the horizon, it almost feels like the it’ll be the white swan that gets us, i.e. QE to infinity.
The Euro gave up the $1.29 level on further talk that Greece will not accept the austerity package offers from the Troika.Â It is yet another round in the fear building game that is being played to keep the Dollar from falling off a cliff.Â Watch the strong ASEAN currencies of Singapore, Malaysia and the Philippines to gauge how much QE the Fed is actually engaging in.