Gold Takes One To The Mid-Section
And now… today’s Pfennig for your thoughts…
Good day, and a tub thumpin’ Thursday to you!
This will be short-n-sweet. It seems the dollar, which had the conn yesterday, has carried that on throughout the night, and is grinding higher this morning. Gold really took one to the mid-section yesterday, losing more than $28 on the day.
I found that interesting considering the talk this week about the coming end of the short gold paper trades. It was as if the gold traders stuck out their collective tongues and said, “not yet!”. I wasn’t sold on that story about the end of the paper trades, instead it was more of wishful thinking. I just don’t see the reason for the selloff. Nothing fundamentally changed in the world, and there was no real economic data prints to look to. I know what I would put this down as.
The Chinese renminbi is the worst performer overnight, as the Chinese pushed the renminbi down by a large margin in the fixing. The rest of the currencies are all down vs. the dollar this morning, some by larger margins and some by tiny margins. The euro, yen and pound sterling are down by such small amounts you could call them “flat on the day”. But like I said above, there’s nothing going on that would move the currencies and metals like they’ve moved in the past two days.
The price of oil slipped again yesterday. Two steps forward, one step backward is how this all seems for the price of oil these days. But a $2 drop in the price of oil, has the gas stations all out changing the prices they display for their grades of gas! UGH!
Today, we get to see some “real economic data” in the form of February Durable Goods and Capital Goods Orders. Some might like the taste of the Markit PMI for March, but the real focus today is on the “real economic data”, and I’m going to go out on a limb here and say that the Goods Orders will both be disappointing and probably print negative. Again!
I came across this article on Bloomberg this morning and it just ticked me off to no end, and then had to make sure I used it here. So, here’s the deal, Lola (Goldman Sachs) is telling the Fed how to deal with their monetary policy. Hmmm… let’s see what Bloomberg says about this:
It’s time for the Federal Reserve to end its dollar fixation. That’s the takeaway from a Goldman Sachs Group Inc. report Wednesday that suggests the U.S. currency poses little threat to the Fed’s inflation goals, challenging the policy makers comments on the currency.
Chuck again. Are you kidding me? Even in my current state of mind, I have to take issue with this! First of all, I don’t know what schools of economics the boys and girls at Lola went to, but they need to go back and relearn how a currency influences a county’s inflation! And that’s all I’m going to say about that today. I’ll come back to this when I have a clear head, and am loaded for bear!
And with that I’ll get out of your hair for today. See? Short-n-sweet as I promised. I hope you have a tub thumping’ Thursday and be good to yourself!
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