Fed cuts 75bps, Gold drops $25?

Quote from Dr. Zhivodka:

Agency MBS swaps spreads verses Treasuries are really starting to come in a lot. This shows relief in the mortgage market as opposed to fear.

In currency trading you need some catalyst to break the perception of the FX traders. If FNM and FRE can start buying up some toxic MBS and they can actually succeed in "un-seizing" the secondary mortgage market....this would good for the USD and bad for Gold.

or not...we'll see
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They're really not coming in much. 40bp in the last week isn't much to cheer about. Better than a continued blowout I suppose.
 
Quote from Jayford:

FX markets had a full basis point priced in. ALL the major currencies tanked pretty hard vs the dollar at the report. That is bearish for gold.

Also, it was quite over bought anyway. I agree with previous posts here. It will go back up, but may take awhile. It all depends on the dollar.
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The Funds rate at 2.25% makes us Japan. 100bp would've resulted in a dollar-rally. Sentiment was at an extreme. Nobody buys the dollar for the swap.

I sold EURUSD pre-Fed. It's going to 1.5500 before the week is out.
 
Any catalyst my friend.... that all I'm looking for.

Quote from atticus:

They're really not coming in much. 40bp in the last week isn't much to cheer about. Better than a continued blowout I suppose.
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My analyst phoned the exchange and got put through to 4 different people, none of them knew what limit down was, searching the web is seems to be $75 for GC. Was getting a little worried scalping around -$50
 
gold always over shoots. Risk is too crappy on the downside now. its gonna bounce pretty hefty i bet. i'm looking for euro to set a base again. probably after hours today. Gold is going to need that for a good bounce. i have no idea where it will bounce to, but it should have some good range on it.

No, i am not a gold bug, i just trade it a lot, always really short term.
 
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