Aug 25. Gold falls over $100/oz

In the past three days (including this morning) gold has fallen $200 from the high.  As of yesterday’s close it was right around the halfway mark of August’s range.  As of this morning at just over $1700, it is about halfway from the July low of just above 1500 to the recently set high of just over 1900.  Stocks rebounded, treasury yields rose, the curve steepened, all in a bounce toward risk from overbought safety. BAC rose over 10% and all financials rallied.  The market will await Bernanke’s testimony tomorrow in a somewhat more neutral state. 

–Today’s news includes Jobless Claims, which continue to flirt with 400k level.  Treasury auctions 7 year notes.  News that Steve Jobs resigned as CEO of AAPL seems to have been taken in stride.

–While economic growth has clearly eased recently, the demand for more proactive steps may be misplaced.  The Fed has just about used all its ammo, and really, delinquent loans have fallen, the pace of foreclosures has dropped, bank lending standards are apparently slightly easier.  Obama is about to unveil new steps to help the economy…an infrastructure bank, payroll tax breaks…blah, blah.  Some of the recent weakness has been due to Japan disruptions, some due to european financial problems…the tincture of time will heal US problems.   Perhaps the best advice to policymakers is what I got as a kid time after time…”the best way you can help is by staying out of the way”

Posted on August 25, 2011 at 1:42 pm by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply