Gold Rebounds Despite Euro Weakness
When the full extent of the horror show that is the final solution to the Cyprus problem finally hit the newswires, the Euro exploded to the downside taking gold and silver with it.Â The problem, of course, is that Cyprus might not even be fixed, just like Greece was never fixed.Â Â Moody’s is convinced it’s still not over and sees a significant chance that Cyprus has to leave the Euro anyway.Â If that happens I think we’ll just be able to start calling it the Zombie Bailout.
Gold and silver both recovered on very strong volume as we closeout the April futures contracts.Â Tomorrow begins the delivery period for the April contract and there was a lot of open interest as of Monday night.Â We’ll see how much of it is still there to take delivery and what that does to the price going forward.
If tomorrow’s U.S. GDP number is bad and the unemployment data bad alongside it that may finally be the impetus to see a 1% to 2% day in Gold.Â But, it will be fought bitterly and expect the noise out of Europe tonight to push the price as low as possible before that happens.
With all of the instability created by Cyprus it is becoming more and more obvious that chaos and fear is what is begin engineered here.Â I didn’t want to believe that they would be that stupid as to try to scare the money out of the banks to get money flowing, but that is becoming more and more the most likely reason for why they chose to push these buttons now over Cyprus.
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.
Currency Articles - Mar 12, 2019 11:34 - 0 Comments
More In Currency Articles
- British Pound Stays Strong Whilst The Dollar Remains Weak
- British Pound Makes Gains on Brexit News Ahead of US Non Farm Payrolls
Gold and Oil News - Jan 15, 2019 11:23 - 0 Comments
More In Gold and Oil News
Shares and Markets - Jan 16, 2019 11:36 - 0 Comments
More In Shares and Markets
- FTSE / DAX Still Weak Moving Into End of Year
- Relief Rally on Share Prices as US and Europe Make Gains