Tag Archives: euro

Euro & Uncle Buck Switch Positions

One is dropping below its MA 50′s and the other is popping above, after the ECB sat on its hands with rates but made a lot of Jawboning about ‘unconventional’ stimulus in the battle against the dreaded deflation.

It is unbelievable the degree to which people still have confidence in these clowns (including the ones packed into the little clown car here in the US), but apparently they do.

fxe.uup

China Gold Demand Drop? So What?

Now we will get to test the theory that little of what most people consider fundamentals for gold actually matters.  That would be things like Indian wedding season, jewelry demand, central bank buying/selling and the one hyped in the gold “community” more than any other, China gold demand.

From Hard Assets Investor:  Gold Flat Amid China Demand Drop

According to the China Gold Association, demand in the world’s largest No. 1 consumer may fall 17 percent this quarter from a year ago. An official for the trade group said the decline wasn’t unusual given the huge spike in demand last year.

“Last year was a peculiar year when we saw a big fall in prices,” Zhang Yongtao, vice chairman of the CGA, said. “People bought a lot of gold, and I think demand will start climbing again once the festive and marriage season begin later this year.”

‘But but… China gold demand is strong!!’ kept people bullish last year as gold got blown up.  Marriage season?  Please.  For me it is investment demand that matters.

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European Markets & Euro Currency Aligned

Contrary to this hair brained declaration by a talking head on CNBC (“I like the dollar; it’s going to kill gold for sure and I think it’s great for American corporations”) the US dollar has dropped and American corporations like it just fine.  That is because American corporations like inflation against a defl err disinflationary backdrop just fine.

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