Luckily for gold bulls, the doomsayers were out in force today raising a ruckus about the unexpected bump up in producer prices.
It was expected to be 0.2% and came in at 0.6%. In and of itself, this is rather meaningless. In our minds we have to take the inflation jump and spread it over maybe six months of virtually no inflation (about 2.1% in the last 12 months). Mixing the pop today in with the last twelve months would give us a producer price inflation rate of 2.15%. Al right, alarmists... go tell the king!
"We think a number of policymakers at the Fed and many market participants... Read more
There is some hope for gold despite the dollar's strengthening against the euro.
"Regular" trading lifted gold by about 0.2% today, demonstrating that investors and traders are showing modest faith in the chief precious metal.
Unfortunately, the dollar's strength wiped all of that gain out and then some, pushing gold down at 4 o'clock in New York, so it stands off $1.30/$1.70.
No real news emerged from Ukraine today, although there is louder and louder talk on both sides. It is interesting that Russia has made virtually no response to the illegal referendum in Donetsk. But we... Read more
You go to a show - a musical, a play - and as the scene is changed, the stage goes dark but from your seat you can glimpse people scurrying around in the wings doing things to get ready for the next scene.
So it was over the weekend. One could sense there very well might be a change of scenes but wasn't sure how long the stage hands would take to move the props around.
The Ukraine situation is certainly taking top billing. The apparently completely bogus elections, something more befitting a backward country in the 19th century and not a reasonably modern one in the 21st, were held.... Read more
With no fresh news to propel it, gold is trading quietly lower today as we head into the weekend.
All we got out of Tsar Putin was more posturing militarily. The absurd parade that shows off Russia's military hardware every year was particularly grotesque this go round given the tense situation in Ukraine.
Only repressive governments feel the need to over-awe their people with such showboating.
On top of that, Putin's visit to Crimea was a further thumb in the eye to Ukrainians. Many other countries make plenty of mistakes internationally, but usually they do it unthinkingly... Read more