Sideways Shuffle

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No wonder that gold is looking for cues.

There was a landslide of economic data released today in the U.S. and the picture of the economy is blurrier, not clearer, from the snapshot.

All twelve Fed district Beige Books reported "modest to moderate" growth (words with a distinction but no difference). Imports surged, ADP's private employment market numbers were dishrag limp, and there has been a decline in worker productivity. Homes sales are soft because of lack of inventory, yet construction employment is still a very weak spot in labor.

Speaking of labor, there is a shortage of skilled workers, another twist that is slowing down better employment numbers. The reality is that we are in an economy where the unskilled will suffer more and more and the skilled will prosper. It is a tale of two economies.

Yet, through all this, two-thirds of the twelve Beige Book districts report strong demand for new loans, business and consumer.

In regular trading, gold is up marginally for the day. Fold in dollar strength and it is down marginally.

The world is waiting for an announcement by the European Central Bank concerning what its actions will be to stimulate sclerotic consumer demand in the huge economic region.

It is assumed that rates will be lowered or that some sort of QE will be put in place.

Those ideas tend to push the dollar higher because the euro is pushed down.

But, who knows what the Europeans will do? They too are moving to a two-tiered economy. (Reports are saying this is happening in Japan as well.) Why should those in the classes in the middle and solidly above the middle want the ECB to act too decisively?

For the same reasons that the U.S. was willing to watch as banks and big corporations get the big bailout while the "little people" grow more expendable - complacency and a loss of vision about just societies. This practically willful blindness will hurt everyone in the developed economies eventually.

Meanwhile, gold has its radar dish up, looking for fresh fundamental signals.

As always, wishing you good trading,