ABU SP, page-25

Not good at all, but IMO any significant drop like this triggers margin calls on related stocks, exasperating things short term, with a bounce back.

As I speak checking the POG we are back at $1509 from a low of $1490.

To put things in perspective Gold in the first 4.5 months of the last year was bouncing around  in the $1300's AU$.

I did find this analysis, from yesterday
http://www.investing.com/analysis/gold-price-channel-258720

RE geo political: The Fed insists on pointing to Sept rate hike, even though the IMF says it wont go with the Greek deal unless the Greeks get a hair cut and the IMF has also asked the FED to delay the rate rise to next year to no avail.

FED Raising interest rates on Bonds, will cause an out flux  from Gold, I think this is what we are seeing as Sept is little over a month away.

Even though its no consolation, eradicating the cloud of the FED rate hike timing should finally put Gold in a stable situation having bottomed out on all the good news (not).

The FED cant raise rates by much often, without flushing all of the borrowed money out of the stock market causing a crash, having made the loaned money that purchased the stocks more expensive in a rising environment of interest rates and they cant raise rates without making bond liquididty dry up.

Once bond rates rise the principal you can get back reduces if you want to cash in early.

Put in simple terms the higher the interest one gets paid for holding the bonds, the lass valuable the bond is if one sells it.

Why because one could sell their bond paying lower interest rates and buy one that pays more interest.

Every time the fed tried raising rates so far there has been a taper tantrum.

The timing absolutely sucks and IMO events are not altogether unforseen, I emailed ABU several months ago pointing out the reporting and achievement cycle coincides with bad geopolitical things for gold price.

At the end of the day getting past the Spector of the FED control and the VIX being normal, will finally create a bottom.

Though Its incredulous that we have no earnings reported and the ABU SP is down in line with producers, in the past this has not been the case.

With the AU POG in the $1500 range, that is still a $700 profit margin per oz.

Reporting on revenue in the next 1/4 should brighten things up a lot. a lot of my estimation in fact used $1500 as the basis. Though I guess to be conservative I would now need to lower that.

The POG is down 2% ish, but producers are getting hammered 8-9% ish, I think on fear of business viability, sell now ask questions later.

I would hope that this is short lived for ABU, once a 1/4s revenue is reported, but it sure doesn't help now.

Regards MarkH