Fed cuts 75bps, Gold drops $25?

Quote from Jayford:

gold always over shoots.
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Looks like it overshot the upper channel line on the upside daily.
Is that what you mean Jay ?

Regards,

.
 
Quote from PaulRon:

Well I agree with half your statement that gold is a function of the USD. But cutting rates is inflationary for the USD, which is good for gold so I'm not following your reasoning here.
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You have got to be one of the more ignorant posters on here.
 
Quote from Jayford:

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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Your last sentence says it all . . . And given what Bernanke and Paulson have been engineering lately, I wouldn't put it past them to JAM the dollar right back up in everyone's face via some sort of intervention because they KNOW that the market is extremely short the dollar, ala Rubin in 1985.

The timing is just too ripe to let this opportunity come to pass.
 
If you have any REAL world idea as to how illiquid and "thin" some of these commodity markets are . . . coupled with the fact that the total amount of money involved in the "managed" futures business is now north of $185 BILLION, you might actually get a clue as to how these markets have the potential to get driven to EXTREMES with no real bearing on actual real world economics.
 
Gold had become a proxy to short the dollar essentially creating a new currency cross GLD:USD. It was insane. It should come down another $200/ounce
 
Correlation mate...do Gold verses somthing its not priced in.

Quote from vikasd:

Gold had become a proxy to short the dollar essentially creating a new currency cross GLD:USD. It was insane. It should come down another $200/ounce
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That way everything can be priced in dollars including loonies, Oz$ etc.

In fact, if there was no correlation, you would not have a cross.
 
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