Monday, September 26, 2011

Dont look know... gold rebounds a bit on Euro rumored kick save

It is Monday... do you know where your money went to?  As usual, the makets roared over 150 points in the final hour based on...

You guessed it, ANOTHER EURO RUMOR.

The leaked rumors of the EU's octuple-down CDO^2 bet on themselves was enough to get the buy-the-rumor juices flowing and we rapidly squeezed higher. IG outperformed, ending the day notably tighter than respective equity and HY spreads would expect as even though risk seemed on, we did not see a mad scramble for high beta and HY bonds remained offered in general. Gold and Silver managed a huge bounce off intraday lows ending the day -1.5 to 2% while the dollar sold off into the close (as EUR rallied) to end the day unch from Friday. - Zerohedge
Gold of course closed above $1600 and silver above $30 after being pummeled throughout the day.  What you need to notice is, NOTHING is in stone until the man behind the curtain, in Europe, or the US comes out like Baghdad Bob and says all is well, and an ACTUAL monetary plan is implemented.
Then... the direction gold or silver goes AFTER that REAL (not rumored) move takes place, can help you feasibly make a decision on your metals.


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