The plunge in gold today smacked of CENTRAL BANK THEATRICS!
AND, WITH THE US TRADE AND BUDGET DEFICITS HEADING FOR RECORDS YET!
MR G's PROMISE TO BE "PATIENT" ABOUT RAISING RATES, WAS, WELL,....NOT THE STUFF OF A SEA CHANGE IN THE MARKETS.
The dollar still has HUGE problems; these are not even beginning to be addressed at any level.
My hunch is that once the dust settles, EVERYTHING goes back to the day before yesterday.
THAT MEANS GOLD AND TECH COULD BE IN "BUY THE DIP" MODE!
LET'S WAIT TO PULL THE PANIC BUTTON UNTIL MR G SHOWS US THE FIRST 1/4 POINT RAISE IN RATES.
ODDLY, I DONT THINK HE WILL! IF....HE CAN KEEP GETTING "JAWBONE" ACTION LIKE YESTERDAY AND TODAY.
Still, by the end of the day today the market seemed to be "reverting back" to the old bubble mentality we had only 48 hours ago.
So;
GOLD FALLS ON NEWS OF GIANT US BUDGET DEFICIT?
YEAH, right......
