gold, page-42137

By looking at the bond yield pricing, the market bond traders reputed the best assessment of risk are factoring the probability of IR hike as probable. More good economic news going forward will just strengthen the case of multiple rate hikes!

I have been observing the gold reaction, so far non responsive to its safe haven status so it is what it is for that shiny metal. I am just observing XAUUSD since in my context there is another layer of movement which is AUDUSD. Currently my read is that our economy is not as great as US and there are no considerations in following the Feds lead with IR simply because RBA needs to gauge the property "bubble" built up over a few years of unchecked price rise. I am more comfortable viewing our ccy underperforming US so this could offer some comfort to the local gold producers. 10 US and Oz bond spread is now almost non existent.

It does not matter if the XAUUSD is being sucked into the vortex of fear selling as long as it under perform the AUDUSD in the selling. Not a given and I can only judge what the local market will do to those goldies I own. It is out of my hands but to hope they bid up the prices.

Everyone here talks long term but I am only concentrating capital preservation so it will depend upon a view of caution or blind assumption regarding gold. Sometimes the subtle signals are what is over looked as useless details and I am just being objective. Very difficult under the circumstance since my exposure to gold indirect is suddenly the only exposure having cleared out of all risk sectors. When I see healthcare sector following the general 'sell first' narrative, I begin to wonder if this is just blind panic or removal of froth as well. It was my fav sector besides gold even though I cast an image of anti-gold sentiment.