The unfolding petro-nuclear Iran debacle laced with faith-based overtones is making the average investor quite nervous these days. |
There is that tug-of-war between would-be buyers and the traders who really are squaring the trading logs before we head into the weekend. |
They did buy the rumor and sell (or not buy further) on the fact. |
Traders were watching a sinking dollar and the apparent diversion of petro-dollar profits into bullion (a repeat of the pattern that was last visible in the gold run of 1980). |
Unfortunately, the district doesn't share that interpretation. They're pushing ahead with a decision right now. |
We saw little evidence yesterday that the Godzilla-size footprints of funds bailing out of gold was present. We did see evidence overnight that millions of tiny (individual-investor) footprints make for an equal-size impact on gold -- in the opposite direction. |
We stand by the assertion that a quarter percent better fed funds rate will NOT make the critical difference to medium-term and/or long-term gold investors. |
We were definitely overdue for a correction and we are almost repeating last week's dip pattern. |
When you ignore the U.N., you ignore all the nations of the world at once. This, as we have learned, is suicidal. |
While there still remains a strong link between oil and gold prices, at this moment any market interpretation of high U.S. inventory levels is being overshadowed by the tense standoff with Iran. |
While there still remains some room for a couple of visits on the lower end of the trading range, the market appears to digest geopolitical and economic realities with the same, predictable outcome: higher prices. |