Comments by R.E. McMaster
What gold’s rally meant 11/17, even as the US$ rallied, is that government money everywhere is being repudiated, and that gold is increasingly being viewed by the market as the only viable money on the planet. (Gold is up 283% since 1999.) The other metals didn’t budge, but courageously held their ground and consolidated their gains as the US$ made its feeble rally attempt 11/17. All of the metals, except palladium, closed at new contract highs 11/17. Right now, the metals, all of them, are effectively spitting in the US$’s face when the US buck rallies, refusing to sell off. … “Something is happening here. What it is ain’t exactly clear.” I am referring to the US T-debt market. T-notes and T-bonds are acting disinflationary, rallying to new recent highs 11/17, acting as if the Fed is about to alter policies and support the US$, and/or that disinflation is about to win for a while. …It is a curious mix, a strange tango, to see both metals and US T-debt rally at the same time.
Comments as of Nov 18 2009 6:29AM PST
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