by Chris Becker
Gold to the moon up nearly 4% overnight! Gold was slowly bid through the Asian session yesterday afternoon, had a quiet London and then bazinga was off like a rocket going straight through $1300 USD an ounce. Here’s the hourly chart:
I only had a small long set overnight as I thought the recent price action was a little overbought. Case of getting direction right, position size wrong. I’ll have a closer look at gold later today.
It was only really precious metals doing any heavy lifting overnight (silver broke through $20 an ounce and is almost at $21USD per ounce) as equity market were extremely flat across the board.
This was not a reflection of USD weakness as most of the major crosses were flat and the US Dollar Index itself fell only 0.1%, as the Aussie dollar (AUDUSD) finished the day just below the 94 handle:
Pound Sterling (GBPUSD) had a better night consolidating above the 1.70 handle after strong bids on the London open, although May retail sales numbers came in below expectations, inflation expectations rose.
US bonds had some intra-session movement with selling increasing yields slightly with the 10 year at 2.6%, and the oil markets saw some small bids with WTI and ICE Brent both up.
The SPI futures point to a flat opening today on the ASX200 given the lack of movement in overnight equity markets. However, keep an eye out on the major gold players (Newcrest – NCM) as the bottom pickers move in!
Its a quiet day to end the week events wise in Asia today, with NZ Consumer confidence this morning.