gold, page-111107

The Feds have already drained bank's liquidity with that massive reverse repo as reported some weeks ago from what I read. I take this as a form of QT unannounced but it is all about IR hike currently confirmed by that NFP number. All I can see is it driving up DXY. Higher DXY, lower commodity prices.

Silver being an industrial metal proxy is much worse than gold but both are falling hard for various reasons I suspect. One thing I have noticed is that from last week Gold/Silver preempted this 'good' NFP number and sold off prior while equities maintained the 'bottom' and in fact rallied into the number! Is this the earliest signal that risk is coming back into play?

Unfortunately just a superficial observation suggest a reversal of gold depends upon the weakness of DXY, back to the high -ve correlation. The Oz XGD is reflecting the bearish nature as each LT support is tested and broken. This is catching the 'falling knife' scenario.

I don't see any reversal yet and the worry is that the later it does, the more it becomes a 'sell the rip' mentality as defensive lose less or not at all kicks in feeding upon itself.