Monday, June 30, 2014
So gold went back up....
Sorry I didn't post this afternoon. I was busy reading comments about the idiotic SCOTUS decision that makes it legal for an employer to force his pseudo-religious mumbo-jumbo on his employees.
They did not rule that an employer has the right to refuse insurance coverage for birth control due to religious beliefs. That is not what they ruled. Because the employer involved in the case is not a member of a religion that is against birth control.
Rather, he personally thinks that birth control is bad, and now SCOTUS has said he has the right to enforce his own personal, ill-conceived, mis-interpreted, make-believe, pseudo-religious mumbo-jumbo on his employees.
Pretty stupid. But what do you expect from a country where people are no longer ashamed of being ignorant?
Anyway, gold went back up today:
It doesn't matter what the hell I or anyone else thinks or says. That is a higher high, and it came on volume. Thus the upward trend is continuing.
As far as I can tell, there was utterly no reason for gold to pop at ~1:55 Eastern time. I didn't see anything in the news. So, it must simply be someone wanting to buy gold. So fine, I'll play along.
Silver also went up:
That's not a higher high, and silver is still overbought, but who the fuck cares? That's the most buying volume in SLV in 5 days.
And GDXJ dutifully followed:
That's definitely not a higher high, but it's still a bounce off the supporting EMA after a 4-day ride, with volume, and it's not even overbought by RSI.
I'd have to think nobody expected this, since the strong June move in PMs and miners must have left everyone expecting a pullback. That is nice, when everyone expects one thing and then another happens.
Plus, there's no fundamental reason for gold to go up - unless you believe the Zerohedge theory that the Chinese collateral gold unwind will force prices up by forcing buybacks of forward sales against nonexistent collateral. Or maybe Whitey is buying because he expects inflation to increase in the US faster than the Fed can adjust rates?
Or maybe people are buying gold because of the declaration of the Caliphate?
Fuck I dunno.
Be long gold miners again, I guess.