Today the United States enters day nine of a partial government shutdown, minutes are released from last month's FOMC meeting and President Obama nominates Janet Yellen to be the next the chairman of the US central bank. This triad of events were the major factors that led the US stock market to trading higher and the US dollar getting stronger. These factors also put tremendous pressure on the precious metals markets.
The release of last month's FOMC minutes put gold in a defensive stance. The minutes release suggested that tapering our current monthly asset... Read more
The incoming fire from Washington to the rest of us trying to get along has gotten so out of hand that more and more people are turning away from the crisis to watch, say, the saga of the 9-year-old stowaway to Vegas on a Delta flight. In the markets, more and more money is being forced to the sideline by the inexcusable behavior in Washington and by the inexplicable lack of vigorous movement in any market, in any direction.
Everyone is hovering.
Yet, one of the stock market's most closely watched measures of investor nervousness, the VIX (Chicago Board... Read more
Fundamentally, it's hard to get a grip on where the precious metals are going for more than the next 24 hours. News flies hot and heavy. Today's "yes" is tomorrow's "no." One day at a time, as the saying goes.
Worry is already starting to ripple through the female population of the United States regarding holiday shopping, with a super majority saying that they are considering curtailing their retail-buying activities for Christmas because of the uncertainty in Washington. This sort of fear is rational and is already affecting big ticket item producers... Read more
discuss what is real and what is not.
It doesn't matter inside the gates of Eden.
- Bob Dylan, Gates Of Eden
As if precious metals traders did not have enough to think about given the economy and the Fed, the princes and princesses inside the gates of Washington have handed us another grenade to play with.
The volatility we have seen this week is due 100% to the lack of constructive dialogue and conciliation in the American capital. What can we make of this fundamentally? We can be cynical and say that a damaged U.S. economy - one losing $300 million... Read more