Macro Morning (gold rocket)

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marketmorning

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:

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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.

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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:

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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.

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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.

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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.