AUTOREFRESH 
Gold trades heavy
By Jamie Coleman || March 8, 2010 at 15:09 GMT
|| 12 comments || Add comment
Gold is not trading as part of the risk trade today, slumping to the $1125 level at last look. Volatility in the yellow metal has been very low in recent weeks, surprising given the upheaval in the euro zone. Perhaps we can take gold’s weakness as a sign that the Greek crisis is moving toward a back-burner issue. I’m open to ideas from readers as I have no solid feel for that market at the moment…
A good drop @gold but it did not effect the e/u fastly…but I think a move may appear as a reaction but after this king of drops in my opinion a consolidation comes for gold…
Me thinks you are spot on. Gold a high pressure valve for HFs. If you ain’t got volatility you gotta create some.
perhaps a good time to go short on nzd and aud for a small consolidation lower? they are like 10 pips of highs for the day
the ratio bwt gold and euro was out of proportion i thinkit is profit taking since greece is getting better. this sounds like euro will get stronger soon.
Jamie, as I said Friday I started building a long position soon after NFP… They haven’t kicked it out…yet. It’s monday so, I don’t expect much of today. However, as crazy as it sounds I expect a 1.68 late this year or the beginning of the next year, given the triple bottom is not invalidated.
As for gold… Gerry said last year when gold was blowing the roof “china and india buying interest 1050 – mark that level on your charts for further reference”. Well, I did, and guess where gold stopped dropping? I hope Gerry took the trade…
Got to say I’m surprised how everyone thinks the Greece situation is getting better. Seem to remember the same being said about Investment Bank subprime losses around mid 2008…then look what happened. It’s all gone quite on the Western front for now, but like the banking situation it all comes out in the end…just takes a bit of time.
Giles, I appreciate your concern but Greece is not Fannie Mae nor Freddie Mac. And EU is not United States FED as in the case of Lehman Brothers. So really, when EU say it’s over (and they hardly ever say something in particular – more ducking than dunking if you know EU) so when EU say it’s over, it’s over.
Fisherman, I hear what you are saying, but could they be saying that to get the markets off their back so they have some time to sort the problems out? How many times have we heard leaders say it is over when really it has only just begun. I think it is only a matter of time before more skeletons come out of the closet. On top of that Greece is a massive black market economy and suspect they will have a real issue reducing their debt.
A 300 points premium for sovereigns within the EU is ridiculous. The 2yr is already plunging, down 20 pc in two days, the 10 yr will follow soon.
Giles, not when you take measures for which tens of thousands of state employees and people receiving subventions want to literally cut your throat for….
“I promise to sort out my finances.” There, now everything’s fixed. What a wonderful world of make believe.
Fisherman, we shall see how that works. Personally I think they have two hopes and Bob ain’t one of them…