Just Monetize, Baby.
So, on one hand we have the FED preparing large participants for outright monetization.
bloomberg.com
And then on the other hand, we have a rather textbook correction in gold underway, that would seem to demand that the old, historical (nominal) high be re-tested. What's that: 840/850?
Gold once again did a brilliant job of discounting the very hot action, of Q1. It made sense therefore that the FED meeting, coming as it did near the end of Q1, would be a profit-taking juncture.
Message 24398732
This all makes for interesting ripples. Or, rip-tides. Perhaps POG only need threaten to go to 850.00, without making a direct hit. My personal feeling is POG does in fact kiss 850.00 at least once, in the next 90 days. The gold equities, however, like the energy equities may actually be the cheapest they've been in 3+ years. While I no longer invest long-term in the gold equities, I'm not averse to a trade.
Pretty much zero has changed in the commodity bull overall, however. The crowd once again, like it has done the past 5-7 years, greets every terrifying correction like it was the end. I need two hands now to count the times oil has "collapsed" to "end the bull run."
But let's give the USD its due for a little while. Here at 72.00 (a little above) on the DXY, I think it's fair to say downside risk has slowed. It will resume. But perhaps not for 2 quarters? Thoughts?
Gregor |
