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Dollars recovered sharply, silver has gone nowhere, gold falling back already and strangest of all, DOW and FTSE futures up strongly!!!???

 

 

Well, that was a fun 30 mins! :P Beats the hell out of me. I'm not a gold bull (or bear, particularly, at $800) but I agree with many of the views held here on the economic fundamentals in the US, UK and much of the Eurozone. I know that F&F has been expected for a long time, so was probably priced in to a good extent, but why stock markets should rally and gold not respond to the news is beyond me.

 

Anyone have any idea?

 

 

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Dollars recovered sharply, silver has gone nowhere, gold falling back already and strangest of all, DOW and FTSE futures up strongly!!!???

 

 

Well, that was a fun 30 mins! :P Beats the hell out of me. I'm not a gold bull (or bear, particularly, at $800) but I agree with many of the views held here on the economic fundamentals in the US, UK and much of the Eurozone. I know that F&F has been expected for a long time, so was probably priced in to a good extent, but why stock markets should rally and gold not respond to the news is beyond me.

 

Anyone have any idea?

it's like watching a trauma patient come back to life.. totally unexpected successes and failures... wow

 

EDIT dunno where BVs prices are feeding from but they never touched 811.

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Spot price feeds seem to be a bit knackered. IG has only just posted an update, so the chart looks like this:

 

silverzb9.jpg

 

The futures price feeds seem OK though. Dec Silver did this (which is where I got the gap from):

 

decsilverfd9.jpg

 

Not impressed by the fall-back though.

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Not impressed by the fall-back though.

 

I don't hold, but PMs do look broken to me at the moment. "Get well soon" is about all you can say.

 

 

I'm guessing gold is up a touch in euros, but down a touch in sterling, whereas oil is up in all 3 currencies. The apparent leverage of gold against the dollar is not there tonight, i.e. its acting like just a inverse dollar, not amplifying dollar drops as before.

 

 

I'm probably just reading way too much into very early trading. Many will be waiting for the reaction in Europe and especially USA before commiting to big positions.

 

 

 

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I'm probably just reading way too much into very early trading. Many will be waiting for the reaction in Europe and especially USA before commiting to big positions.

I know what you mean. Sometimes the markets are just plain confusing.

 

- There'll be a change in UK interest rates and the pound won't move. OK - so the market had the move priced in. Fair enough - these traders are a savvy bunch.

- But then there'll be an event like last weekend where Alistair Darling admits what anyone with half a brain already knew and BOOMF, GBP falls off a cliff.

- Is it a big surprise that Fannie and Freddie would end up this way? I can't really tell from what the market's doing.

- And why GBP so upbeat this evening? I suspect it just got over-sold last week.

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I know what you mean. Sometimes the markets are just plain confusing.

 

- There'll be a change in UK interest rates and the pound won't move. OK - so the market had the move priced in. Fair enough - these traders are a savvy bunch.

- But then there'll be an event like last weekend where Alistair Darling admits what anyone with half a brain already knew and BOOMF, GBP falls off a cliff.

- Is it a big surprise that Fannie and Freddie would end up this way? I can't really tell from what the market's doing.

- And why GBP so upbeat this evening? I suspect it just got over-sold last week.

 

Maybe KITCO is just really delayed, but it looks to be flying up. Beethoven's 9th seems quite a fitting accompaniment :rolleyes:

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I know what you mean. Sometimes the markets are just plain confusing.

 

- There'll be a change in UK interest rates and the pound won't move. OK - so the market had the move priced in. Fair enough - these traders are a savvy bunch.

- But then there'll be an event like last weekend where Alistair Darling admits what anyone with half a brain already knew and BOOMF, GBP falls off a cliff.

- Is it a big surprise that Fannie and Freddie would end up this way? I can't really tell from what the market's doing.

- And why GBP so upbeat this evening? I suspect it just got over-sold last week.

 

F&F certainly wasn't a surprise - it didn't come out of the blue, whereas Darling's pronouncements were truly out of the blue. Not the substance of what he said, just the fact that he chose to say it at all. With F&F it seems to be a case of sell on the rumour, buy on the news.

 

Option 1: F&F is indicative of major systemic problems. Buy gold. Sell everything else.

Option 2: The willingness to intervene in F&F means things are not so bad. Buy shares.

 

The markets seem to have chosen the "blue pill" once again............

 

.................and then gold starts to come up on the outside!

 

 

Time for bed, I think! Good luck and good night!

 

 

 

 

 

 

 

 

 

 

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Gold already going up and opening trade in the US now shows the dollar index to have peaked and now declining - already down 0.4% - sure sign that commodities/gold are going to rally from here.

 

I see a conspiricy here.

 

China and the US have been highly corodinated in recent weeks:

http://www.greenenergyinvestors.com/index.php?showtopic=4178

 

The end-game may have China buying Gold, energy, and mining shares (soon?)

- while the endgame for the US is launching the bailout of Fannie & Freddie while the dollar is strong

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I see a conspiricy here.

 

China and the US have been highly corodinated in recent weeks:

http://www.greenenergyinvestors.com/index.php?showtopic=4178

 

The end-game may have China buying Gold, energy, and mining shares (soon?)

- while the endgame for the US is launching the bailout of Fannie & Freddie while the dollar is strong

 

What I can't believe is all stations are touting this nationlisation as Good News - the world is saved, credit markets are back and have taken the shape of the US government!

 

LOL - Fannie and Freddie are in so much shit the taxpayer is having to bail them out and this is good news? Allegedly this is going to halt the slide in US property and maybe even allow it to turn positive again.. Errrrrr how? Government will buy and gurantee the debt.. Is this what is called 'monetizing debt'?

 

 

Un-Believable.

 

IMO this is the beginning of the end . . a couple of more months of intervention, all the way to November election then this could be late 1978 all over again for Gold.. ?

 

 

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Just bought some gold & silver.

 

Expect massive drops. :lol:

 

 

Could well be. At least now we know why silver was brutally attacked last thing on friday. The PPT will have to be out in force today to smash down G&S. A run on the dollar must be prevented at all costs to keep up the spin that this is somehow GOOD news!

 

 

 

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What I can't believe is all stations are touting this nationlisation as Good News - the world is saved, credit markets are back and have taken the shape of the US government!

 

LOL - Fannie and Freddie are in so much shit the taxpayer is having to bail them out and this is good news? Allegedly this is going to halt the slide in US property and maybe even allow it to turn positive again.. Errrrrr how? Government will buy and gurantee the debt.. Is this what is called 'monetizing debt'?

 

 

Un-Believable.

 

IMO this is the beginning of the end . . a couple of more months of intervention, all the way to November election then this could be late 1978 all over again for Gold.. ?

 

I disagree ...kinda

 

F+F now have absolutely zero risk of going bankrupt, so it is less risky to go long on Western economies (even though prior risk was miniscule)

 

The mortgage borrowers still can't keep up their payments, but that no longer implies F+F MBSs should be so devalued as they are now underwritten by the US government. So all holders of these MBSs have just become wealthier.

 

Confidence has to improve given the above

 

Even more amazingly...

 

The 'value loss' that was being suffered by MBSs and which was crippling the credit system has now been fully covered by the fed printing of new money. That should weaken the dollar, but no - they've simply arranged for non-US CBs to buy their dollar bonds to keep the dollar strong, weakening their own currencies in the process.

 

Great to know we're all now baling out the US isn't it? ...sharing a friends pain is one thing, but this sucks!!!

 

Bottom line: imminent global depression just been made less likely or curtailed, but the global inflation monster has just been given a big adrenalin injection

 

 

 

 

 

 

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Bottom line: imminent global depression just been made less likely or curtailed, but the global inflation monster has just been given a big adrenalin injection

 

Exactly, I find it simply mind boggling that the market action of the last few months has given ZERO discount to the possibility of inflationary intervention, yet all we ever see from Government action is exactly that.. every time!

 

 

 

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I disagree ...kinda

 

F+F now have absolutely zero risk of going bankrupt, so it is less risky to go long on Western economies (even though prior risk was miniscule)

 

The mortgage borrowers still can't keep up their payments, but that no longer implies F+F MBSs should be so devalued as they are now underwritten by the US government. So all holders of these MBSs have just become wealthier.

 

Confidence has to improve given the above

 

Even more amazingly...

 

The 'value loss' that was being suffered by MBSs and which was crippling the credit system has now been fully covered by the fed printing of new money. That should weaken the dollar, but no - they've simply arranged for non-US CBs to buy their dollar bonds to keep the dollar strong, weakening their own currencies in the process.

 

Great to know we're all now baling out the US isn't it? ...sharing a friends pain is one thing, but this sucks!!!

 

Bottom line: imminent global depression just been made less likely or curtailed, but the global inflation monster has just been given a big adrenalin injection

 

Hmmm, this gives me much to think about... thanks bigtbigt. Yup, really suck's :(

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