absolutely, good eye, @pantheo :)
price action speaking rejection/reversal and 11k2 is trigger down
pantheo
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@look4edge, remain to see now if correlates with euro and both falling together, so capital is flying to US, which means European crisis is back or never left anyway to be exact. Maybe Italy and/or Spain will be in the crosshairs now giving ECB the nightmare we are waiting for few years:-) Yields higher, Draghi "normalizes", kaboom! Cheers, P.
look4edge
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@pantheo, right, spain banking sector terrible, however, not doing correlations, rather following tape, currently interesting selloff in bonds running - to me terminal before correction up, maybe yields going higher but why gold plummeting if kaboom coming?
pantheo
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@look4edge, Good question:-) Gold doesn't always instantly correlates with current actions or geopolitical events, rather rarely, apart from something sudden and cataclysmic of potential great magnitude and only for the time period that market need to access what happened. Almost right after, event's profile its embedded in the price of every asset. Gold, imho, express people's view about the system or the amount of confidence they have in the financial sector and the ability of the government to manage the events and their lives. As we know, the timing of this indication, is priced in late in the cycle of events, causing price to increase in volatile way, inside a low liquidity environment. When this moment comes, volatily is released and prices tend to move in multiples of their historic average. Don't forget that, novice traders are judging through their emotions, namely greed and fear. Public is acting more or less the same. When the majority of people loose their confidence, gold will rise due to higher demand lower supply, along with other assets of course.
Regarding Spain, Popular was systemically important, hence saved by the ECB this weird way and got sold to Santander, damaging of course junior holders. The two Italian banks were not and named "domestic interest" cases for their rescue with tax payers money, which is forbidden by the rules of EU, meaning BRRD directive violated. If you manage a billions fund would you place yours or clients money in italian or european banks for the long run? Gold, as everything follows his cycles. There are times you buy and times you sell. It's better to buy something when its low priced. If 980-930 comes, will do with both hands. For the time being short or hedging pays the costs of desirable accumulation when the moment comes:-)
price action speaking rejection/reversal and 11k2 is trigger down