With all the gyrations and with all the verbal pyrotechnics coming out from, and about, the Fed, it's no wonder we've seen a spike in prices this week. Traders and analysts have been spinning themselves into a tizzy over the prospect of tapering or not tapering for eight months now.
The Fed itself isn't helping matters much, either. In a serious game of bridge, talking aside from actual bidding is strictly verboten. Apparently members of the Fed don't view the game they're in as serious because they gibber monkeys at any opportunity.
Perhaps the bears became too rash and that allowed... Read more
Bargain hunters, bottom fish, and short covering traders sent prices back into positive territory on Monday after Federal Reserve Bank of St. Louis President James Bullard said, with an important set of caveats, that tapering will become increasingly likely as long as the labor market continues to improve.
"A small taper might recognize labor market improvement while still providing the Committee the opportunity to carefully monitor inflation during the first half of 2014," Bullard said in prepared remarks of his speech.
"Should inflation not return toward target, the Committee could... Read more
Strong, stronger, strongest. That's how we can best describe the economic news that this week streamed out of the United States, official and unofficial. And, like many aspects of growth, sentiment counts.
If people feel better about the economy, they spend more. The discouraged look harder for jobs because they sense that there are jobs "out there." Companies and individuals take more risks because they perceive there are big paydays.
Except for the unexpected wild card in foreign affairs, which should not be counted out, usually prosperity means peace. (While China may be rattling... Read more
There is a flurry of economic reporting activity this week. The first out of the gate, ADP's labor report, seems to have initially depressed gold prices, then that dip inspired investors to step in on bargain-hunting and short covering.
The monthly ADP U.S. national employment report for November came in at an unexpectedly healthy 215,000 jump in the number of workers. That beat market expectations of a rise of around 170,000. Gold experienced immediate selling pressure following the ADP report, although that pressure was half-hearted allowing bargain hunters to seize the day.
This... Read more