The big loser following the strong initial jobless claims and housing starts reports was gold, which promptly dropped $10 to $1672.
Jobless claims are volatile but with the Fed’s renewed focus on employment I expect it will grow in importance. If the Fed begins curtailing its $85 billion monthly purchases of Treasuries, gold will suffer.
Technically, no real damage will be done to the chart today as long as gold remains above $1666.
