Share
Gold has given up $100 in recent weeks & traded below $1200 the first time since early January.
The bears have taken gold on in the knowledge that the spec market was very long & Chinese NY buying was coming to an end. But a fairly large wrench was just thrown in the works last night.
The Fed is backing away from raising interest rates.
Who would have thunk it.
The US economy isn't strong enough to endure anything but zero interest rates!
Questions will now be raised are we heading toward another bout of QE?
The strengthening USD is hurting corporate America particularly exporters & multi nationals.
Other than the burger flipper jobs that have been created other data has recently softened.
And then imo the next sharp leg down in oil is about to hit us & in particular the US shale industry & imo again this will spark a miniature credit crunch or perhaps debt blow out is a better description.
Gold bounced sharply $15 on the Fed view.
I was lucky to job in & out for gains yesterday & then pick up gold again this morning at $1200.50
So we now have a much lighter spec position, perhaps not quite as clear as I would like.
We still have Greece & the Ukraine hanging over us & I think the bigger catalyst will be oil that's yet to come.
Looking at the chart, if last night was the low in this move, gold has just bounced off a support line that has formed since early November with higher lows.
Cheers Daytr
