No Juice In The News

Bigger-than-expected gains in existing home sales helped push gold down today.

A report from the NAR (National Association of Realtors) showed contracts for the purchase of existing homes increased 3.4% in March, topping estimates that foresaw a stagnant to slightly up market.  

Before the report sank in, gold had reached a one-week high as escalating tensions in Ukraine spurred haven buying.

The Ukraine is simmering, without a doubt. Today a moderate, middle-way mayor was shot and almost killed in an eastern city.  

The West also imposed a second round of sanctions on Russia. The incremental approach has much to recommend it. NATO will not go to war with Russia militarily over eastern Ukraine, but it will ratchet the lid down on the Russian economy that is Putin's great selling point to his people.

If Putin were to fall, he would certainly face serious repercussions from the rest of the Russian oligarchs, most of whom think he's gone mad. It's all about the Benjamins.

Stocks were weaker in Asia early today, rebounded in Europe and rose in the U.S., particularly toward the end of the trading day. That also served to take some wind out of the gold's sails.

Oil and the 10-year yield were also up, but only marginally. It seems that everying was slightly sleepy this Monday.

But, a slight correction to gold could have been expected in the teeth of what amounts to no news, and the good solid rise gold had last week.  

As always, wishing you good trading,