Gold Pops Back Over $1470 On German Data - May 9, 2013 1:00

The resetting of the Euro back near $1.30 coupled with a drop in oil and base metals prices saw German industrial production jump 1.2% in April, far exceeding the estimates and surprising markets.  The Euro responded in kind and the selling in the Dollar it engendered was positive for Gold.  It didn’t hurt that right […]

Gold Rises on Euro Strength - April 29, 2013 22:36

The Euro pushed back towards $1.31 today while the U.S. Dollar weakened versus the Japanese Yen.  Yen strength means dollar weakness across the board as we saw all inflation assets move higher.   Gold, up until recent months, had been strongly correlated with the Euro/Dollar cross but that relationship has broken down with the rise of […]

The Euro Yen Unwind Continues - April 12, 2013 1:13

Watching the currency markets right now is an interesting exercise — not a complicated one.  The apocryphal Mrs. Watanabe is pulling her money out of her homeland and depositing it around the world in other currencies and government bonds that promise a far better real yield since her home country has seen fit to reward […]

The Yen Approaches 100, The Euro Stabilizes - April 8, 2013 21:33

We have not seen the end of the Yen debasement by any stretch of one’s imagination.  The Japanese monetary dumping ground has been in free fall since markets opened Sunday night and the USDJPY pair is now comfortably over 99 and headed to 100 easily this week.  The U.S. bond market has given back more […]

Bank of Japan Goes to Infinity and Beyond - April 5, 2013 0:57

The new head of the Bank of Japan made his mark on the markets with his first pronouncement last night.  Skipping the particulars, which if you are truly interested you can read them here, the BoJ is committed to doubling the size of its balance sheet over the next 20 months adding Â¥7 trillion per […]

Gold Knocks on $1600 Again, Thwarted by Euro Weakness - March 13, 2013 20:47

As I’ve been saying, the tenor of the Gold market has changed in the past couple of weeks.  We are seeing more buying during the illiquid COMEX pre-market than we did before the bottom at $1550. This tells me that whoever is still trying to cap the price of gold it isn’t the same group […]

Gold Holds $1675 Pre-Election, Grinds Higher - November 5, 2012 22:32

Looking at the chart of Gold after this morning’s dip near the European open looks like the price equivalent of watching a tractor pull at a strongman competition.  Every 15 minute bar on the December contract is just another small step forward as bulls refused to be beaten back but bears refused to give much […]

China, Japan Do the QE Thing While U.S. Markets Sleep - October 31, 2012 20:45

On Monday the Bank of Japan announced another addition to their near-limitless QE program, Â¥11 trillion to be precise.  The market was hoping for Â¥15 trillion and as such the Yen promptly rose by 40 basis points.  This is what passes for markets these days.   The front-running of what traders expect central banks to do […]

Forex Outlook for the Week Ending December 23rd - December 20, 2011 21:53

Major economic events that could affect the currencies trading for the week ending December 23rd, 2011 are as follows: On Monday December 19th, 2011, United Kingdom reported its industry data on house price inflation while Bank of England published its quarterly bulletin. Official data on current account was released in euro zone. Moreover, European Central […]