Friday, November 2, 2012

Morning - good jobs report supposedly means nobody wants gold anymore

So there was a good jobs report out of the USA this morning, and gold immediately puked.

Which obviously means there's a bunch of HFTs programmed to puke on a good jobs report. We knew that.

Like I keep saying - the USA's economy is carrying the world right now, so any improvement in the US economy should be good for gold and silver if their prices are dependent on industrial production and Asian growth.

Instead gold acts as if a good jobs report means the US stops printing money - which as Gartman notes, it's not doing to begin with - and that therefore gold demand is annihilated because according to goldbugs the only people who buy gold are survivalist wackaloons in Mississippi. Not rich Chinese or Indian peasant farmers.

Meh... we'll see what happens today. Maybe, at the very least, all those miner stocks that popped yesterday and Wednesday will drift back down today? Otherwise, the folks in Bombay can buy gold on special today, just in time for Diwali.


  1. Gartman is telling lies:
    OT2 IS money printing, even if the balance sheet of the Fed is not growing, because the balance sheet expansion is taking place in the market: the FED guarantees ZIRP until 2015.
    This means the short end of the yield curve is GUARANTEED by the Fed.
    This means if the Fed sells these treasuries into a guaranteed ZIRP-window, this is effectively like guaranteeing the price - which means QE.
    A very clever trick, which obviously nobody is understanding, but since the Fed at year end will have sold almost all of the short dated bonds, it will have to switch into direct QE again - which means +40 bn/month resulting in 85 bn/month.

    So ask yourself why Gartman is NOT talking about these very bullish and FUNDAMENTAL monetary factors?
    Instead he is talking about things, that can be used to paint the headlines, but have nothing to do with the long term trend of gold/silver.

    The current selldown is a preparation of a buffer for the upcoming QE+.
    My 2 ct.

    1. USA doesn't need any more quantitative easing. If you were reading good summaries of US economic indicators like NDD at Bonddad, instead of the silliness at ZeroHedge, you'd know that.

      It's the Eurozone that needs stimulus spending. And once the Germans start suffering enough, they'll all of a sudden be in favour of it.