The recent spate of back-to-back hurricanes in the US is expected to compound the economic damage of an already over-extended debt. As the stock market braces for a correction, traders are inclined to sell out of riskier stock markets and take refuge in safe havens like gold.
The last 3 days have been 'nosiy' in precious metals markets with gold swinging from the best day in 5 months to the worst day in 4 months and now to another high volume surge, breaking the barbarous relic back its 100-day moving-average...
It sems the 100DMA is a key level with heavy volume being used to push gold futures around it.
UBS asks "Is gold establishing a foundation for a rebound?"
Gold longs rebuild while shorts continue to hesitate
Following September's positive housing data rebound, October data is starting well with existing home sales surging 2.0% MoM (better than expected 0.2%) to 5.48mm SAAR, as US existing home sales inventory tumbled 10.4% YoY, to 1.8 months, the lowest since 1999.
Sales of previously owned U.S. homes rose to a four-month high, indicating demand was firming at the start of the quarter as the impact from hurricanes faded, according to a National Association of Realtors report released Tuesday.
US equity futures were deleriously bid from the moment Europe opened overnight...
But as US equity cash markets opened, 'risk off' flows suddenly hit sending Yen, bonds, and gold kneejerking higher...
Just days after Barclays released its 2018 equity outlook with the title "Rational Exuberance"...
... Goldman's David Kostin decided that imitation is the sincerest form of flattery and in presenting his S&P price target* for 2018 (and 2019 and 2020), and has named his preview report the same: