13 October 2014
Gold Daily and Silver Weekly Charts - A Little Flight to Safety
Gold caught a little 'flight to safety' today as stocks fell out of bed in the last hour of trading.
Silver cannot seem to get out of its own way, but managed to post a little gain in the aftermarket.
As a reminder, this Friday is a stock option expiration, so let's be on the lookout for the games Wall Street people play.
There was no real economic news in the US for Columbus Day holiday, but we have some news later this week, and as always earnings reports.
I don't know if it is the November elections effect or what, but the commentary on American television is going from silly to absurd. The Very Serious People in New York and Washington must be living in some alternate universe.
Let's see what happens when the adults come back to work tomorrow. We will probably see some follow on selling in overseas markets, although it was not quite clear what triggered the big selloff this afternoon. Just skittish, perhaps. And some pre-option expiration hijinks.
As J. M. Keynes observed, it is not a good policy to allow your investment allocations and price discovery to be decided by a casino. And that is exactly what is being done in the West.
Have a pleasant evening.
Posted by Jesse at 4:28 PM