Morning Report Wednesday 28 May 2014
See our Market Matters video on “Investing vs. Trading?”
Gold plunges to its lowest level in 16 weeks, how much further?
Last night, gold fell -$US28/oz to $US1,265/oz as the market continues to focus on the lack of inflation in the world, especially Europe, and declining tensions in Ukraine after the weekend elections. We have been calling this move for almost two months and last night’s acceleration, I feel, is the start of a move below 2013 lows of $US1,180/oz – only 6.6% lower. If I was trading gold like in my old days, the position would be short gold with stops above $US1,278/oz. What is very exciting is that inflation will kick back hard sometime in the coming decade after an unprecedented amount of stimulus, but the market has gone way too early with its inflation looming call. Sometime in the coming year will be finally time to reallocate funds from high yielding winners of the last five-plus years to the hammered sectors that benefits from inflation / higher rates.
Show more...
