Probing And Looking

After today's weekly new unemployment claims, many investors thought gold would make a good bet. The one-week snapshot seemed to be talking awfully loudly to them. In fact, the texture behind the weekly claims is much more positive. Job openings are increasing and some of the above-expected numbers in unemployment seem to be the result of job hopping, not weakness in the labor market.

 
Once this was established, gold settled back down again until, in late afternoon, spot is virtually unchanged. Dollar weakness, if it can be called that, is accounting for any upward price pressure we are seeing on gold. 

 
Once again, although less dramatically, the stops on our short trade were probed.

 
Gold demand in China is down 27% from 2013. World demand is down 2%. This, despite the hefty slide in prices this year. No one seems to want to buy even at bargain prices. 

 
Just about all analysts see the U.S. economy as staying in the medium-hot to very-hot range. Thus, the U.S. dollar has become the safe haven of choices.

 
U.S. West Texas Intermediate crude continues to plummet, and Brent right along with it. Texas is flirting with $74 per barrel and crude is hunkering down today in the mid $77's. This does put pressure on gold prices. The two trading favorites are helping to weigh on the whole range of commodities. 

 
Equities were up across the globe except for the Shanghai index, which will see some volatility until its absorption into the world system is complete. The Dow is in record territory. 

 
The U.S. 10-year yield, another haven vehicle, was down. It's mired in the 2.3% range.

 
However, this all doesn't mean gold is finished fluctuating as it seeks direction. 

 
EDITOR'S NOTE: Please be aware of this month's travel and holiday schedule, which will cover the period from today through the 30th. Thanksgiving falls within those days. Additionally, during that period, I will be in Indonesia, lecturing to key gold traders there. The time differential will make it necessary for me to send out the regular fundamentals (upper portion) of the newsletter at the usual time. The videos' timing may be different. You will receive special notification immediately following the release of a new video, which will appear on the website. Of course, trade alerts will not not change. I will monitor markets as usual and have all equipment necessary to produce videos. Thank you.

Wishing you as always, good trading,