So Wall Street Whitey's robots puked gold instantaneously at 8:30 AM on the US jobs report, thinking that because blah blah blah therefore sell gold.
Apparently it has something to do with the "opportunity cost of holding gold", which supposedly depends on US interest rates, which assumes the people who buy and hold gold care about US interest rates, which is untrue at least to the tune of 2000 tons, which is about what east Asia buys in phyzz, and moreover that assumes the Fed is raising rates this year, which is doubtful considering the recent expressed opinions of Hilsenrath and Williams and everyone else, and also the inflation data, which they've already explained is guiding their decision, which has also been very tame, and anyways the US has been below its 2% inflation target for 36 straight months, and anyway even if US interest rates did have an actual effect on the gold price then why should they also affect silver which is an industrial metal, so therefore you'd think silver should go up on good jobs data, because that would suggest a global economic recovery gaining steam, but even if that were the case then gold should go up too because it would mean more money for the EMs to buy gold with, and so on and so on....
And meanwhile, as he diddled around with his marketbots, trying to smash gold with instantaneous market sell orders, Whitey missed the most important gold news of the summer:
Wall Street Journal, Which You'd Think White-Ass Honky Crackers Actually Read - monsoon arrives in Kerala. Quote:
NEW DELHI—India’s monsoon rainfall reached the southern state of Kerala Friday, offering relief to farmers who have been waiting for the June-through-September rainy season to arrive so they can plant summer crops.
“The southwest monsoon has set in over Kerala and advanced to some parts of adjoining Tamil Nadu and Karnataka,” the India Meteorological Department said in a press statement Friday.
Monsoon rainfall is crucial for the hundreds of millions of Indian farmers who depend on it for irrigation.
And a large percentage of India's GDP is agriculture, and it's the farmers in aggregate who buy most of the gold in the country.
And that's why gold goes up in June and July.
Here's Skymet's take:
Skymet - update: monsoon onset in Kerala. Quote:
The cyclonic circulation over southeast Arabian Sea and adjoining Lakshadweep has become more marked. It seems to be invigorating the onset of Monsoon in Kerala. In view of the system, rainfall over Kerala has increased significantly. The flow of winds over southeast Arabian Sea are also becoming favourable.
Once a weather system comes up in the Arabian Sea, the onset process of Monsoon gets a boost. And, this time the cyclonic circulation over southeast Arabian Sea, off Kerala and Karnataka coast, has brought favourable conditions for the onset of Monsoon.
Prerequisites for the onset of Monsoon in Kerala:
1. Southwesterly winds are blowing over southeast Arabian Sea, close to the mainland of India.
2. The speed of winds have also met the threshold value of 20 to 30 kmph.
3. We can see thick clouds over Kerala and coastal Karnataka. Consequently, the Outgoing Longwave Radiation (OLR) has also met the required value.
But you go ahead and keep selling gold, Whitey! I'm sure one day your stupid "opportunity cost" theory will come true and the whole "supply and demand" story will turn out to be a silly lie! Because America is the only country in the world! Therefore the only reasons to buy or sell gold are American reasons!