Two must reads this morning on Gold.
I wanted to point you quickly to two much read posts on the current dive in the spot gold price.
First there’s this from one of my daily reads, Ed Steer:
But what I do know is this, that when this correction has run its course, it might be the last decent entry point to buy the precious metals and their shares for a very long time to come… as this bull market in gold and silver has a long long way to go before it breaths its last.
Then there’s this guest post on Zero Hedge: Why The Big Drop In Gold?
In short, a stabilization in the jobs market does nothing to improve the balance sheets of zombie banks. An improvement in the big bank balance sheets is the prerequisite which would allow the Fed to mop up the excess liquidity, not am improvement in the jobs market. So, in short, the Gold market has probably overreacted a bit, and may continue to trade lower into the next jobs report. When market participants are reassured that the Fed is in a box and that the excess liquidity must stay in the system for the foreseeable future, gold prices will resume its trend higher and currency carry trades will be put back on.
I’m tracking gold and silver right now with ExactPrice and they are $1141.50 and $17.91.