Gold: same level despite Dow surging 50%

[Debaser82]

Gold:

03/09/2009 940.80 $
07/23/2009 949.1570 $

Dow:

03/09/2009 6547
07/23/2009 9000

How can this be?

Dow 6500 = End of the world is here

Dow +9000 = recession is easing if not ending

Still gold stays at the same level.

Gold has a history of exposing (economic) turmoil as monetary loosening yet it fails to show it's true direction so far.

Any idea on the (missing) correlation here?

 

[krazykarl]

Not everything is correlated.

 

[Ivanovich]

Oddly enough, we're not seeing any of the FX carries going hog wild with the DOW like usual either. Something is awry.

 

[trefoil]

I posted on some other gold thread a while back that this year would be sideways, and so far that looks right. The range is wide, from 700 to 1000, which is just the yearly low/high, so lots of good trading action in there.
I always hold that the significant bottom in gold tends to happen around Thanksgiving. My working assumption is that's what will happen this year. Figure on the fundamental side that that would be when the liquidity wave now being pumped out of the world's govs will hit. Right now, any money being pumped out is still being used to keep things from collapsing and invest in all those companies that are beating their earnings, allegedly anyway. (I see on the side that my limit order on some hedging calls just got filled, so gold must have just taken another tumble just now.) Later on, there'll be enough surplus to send gold higher.

 

[makloda]

The currencies seriously are weird today. EUR, AUD, NZD are not acting like they "usually" do during big upward spikes in the equity markets.

Regarding gold. Hey, isn't it a "store of value"? Not a vehicle for speculation

 

[Debaser82]

It gets even stranger when you look at GDX (Gold mine ETF) over that same period of time for instance or many featuring components who are up 30% on average.

 

[trefoil]

Quote from makloda:

The currencies seriously are weird today. EUR, AUD, NZD are not acting like they "usually" do during big upward spikes in the equity markets.

Regarding gold. Hey, isn't it a "store of value"? Not a vehicle for speculation

Dollar started higher at around noon. Only one I look at. Shorted gold via GDX at one. So far, so good.
Odd day, you're right.

 

[athlonmank8]

Quote from Ivanovich:

Oddly enough, we're not seeing any of the FX carries going hog wild with the DOW like usual either. Something is awry.

Yeah the USD actually held it's ground today. Was surprised by that as well.

Treasuries are something to watch too IMO. Something brewing there.

 

[athlonmank8]

Quote from makloda:

The currencies seriously are weird today. EUR, AUD, NZD are not acting like they "usually" do during big upward spikes in the equity markets.

Regarding gold. Hey, isn't it a "store of value"? Not a vehicle for speculation

LOL

 

[pulsescan]

Quote from Ivanovich:

Oddly enough, we're not seeing any of the FX carries going hog wild with the DOW like usual either. Something is awry.

yeah its called market manipulation.

Quote from makloda:

The currencies seriously are weird today. EUR, AUD, NZD are not acting like they "usually" do during big upward spikes in the equity markets.

Regarding gold. Hey, isn't it a "store of value"? Not a vehicle for speculation

EUR/JPY followed along just fine though. Again more market manipulation by the Fed via Goldman Sachs i.e. PPT etc etc.