Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

Big Iron bubble mushrooms, Big Gold crashes

Thursday, 10 November 2016

Big Iron has finally capitulated to the building bulk bubble with everything screaming higher today. Dalian is slightly off its overnight highs and coking coal futures have stalled. BHP and RIO are 8% up, FMG is 7%, WHC is a measly 2% as thermal coal appears topped out:

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Nobody is worried that thermal is the leading indicator for what’s coming to coking and iron ore as supply responds. The music is playing and it’s time to dance! FMG is now higher than it was when iron ore was at $190:

Morgan Stanley reckons:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.