Archive for 13/06/2010

All quiet, for now

Gold bounced around a bit after its big surge up last Monday and settled at roughly the same level, around $1230. On Thursday silver got a boost from the early tremors of a rebound in the general markets. Oil also bounced up a bit, and the Euro seems to be stabilizing above 1.20.

However, we may yet see some big moves down by end of month in equities. Be very careful. The support level of 1045 in the S&P is one to watch. So far any attempt at a bounce has been quite mild. So yes, there could be a big rebound soon, or we could have another devastating wave of bearishness. All we can do is wait and see.

So far, gold is holding up even with a retreat of bearishness. If a rebound takes shape, then the dollar could drop and it will  be interesting to see if gold resumes its inverse relationship to the dollar. This past week and recently it looks more like gold and the dollar are moving more or less together as newly united safe havens.

Bloomberg recently ran a comprehensive article on the European sovereign debt situation. The piece is fairly balanced if you read it to the end. Either a Greek default is inevitable, or it’s been priced in and a larger collapse has been averted. Who knows? Here it is:

http://www.bloomberg.com/apps/news?pid=20601087&sid=avhINInuvuzE&pos=2

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