Friday, November 14, 2014

Euro Rally Pulls up Gold

I am still trying to get some information as to the driving force behind the unexpectedly sharp rally that is taking place in the Euro from off its worst early session levels.

The common currency rallied almost a full 100 pips off its low in the span of a couple of hours but especially within the last hour. As it moved up, gold shot up as well as silver and even copper.

As soon as I can find out something I will throw it up here at the site, assuming I have some time to do so. It is a busy morning with extreme volatility being seen across a large number of individual commodity futures markets.


Take a look at the combo chart showing gold on the bottom and the Euro on the top. Note that the relationship is almost perfect!  As mentioned before here, gold is going to take its cues from the currency markets.

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12 comments:

  1. UnknownNovember 14, 2014 at 8:05 AM

    Hi Dan, I think the Euro strength is due to some better than expected GDP numbers.

    http://www.cnbc.com/id/102184909

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    1. Trader DanNovember 14, 2014 at 8:10 AM

      Gene;

      Thanks much - I see this now as I missed the story on my feed somehow... "too many mind" to quote a line from the movie, "The Last Samurai"!

      Chatter is now the ECB will not have to offer any additional stimulus, (bond buying) especially with the sharp selloff in energy prices working as a form of stimulus.


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  2. DarkPurpleHazeNovember 14, 2014 at 8:16 AM

    Thanks Dan...and Gene...for the heads up on that sudden EURUSD reversal.

    Interesting to see gold stop just short of $1180 again and silver barely resisting $16 again.

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  3. LorenNovember 14, 2014 at 8:25 AM

    Bloomberg ;

    German Economy Grows More Than Forecast

    German Economy Returns to Growth As France Beats Forecast

    Greece Exits Recession After Debt Crisis Tah Put The Euro At Risk

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  4. UnknownNovember 14, 2014 at 9:26 AM

    Wow it's broken $1,180. This must be more than strong Euro. That was major resistance!

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  5. DarkPurpleHazeNovember 14, 2014 at 9:29 AM

    Wasn't it just last Friday a big bounce in gold/silver occurred out of the blue?

    Either way, pretty interesting action in the EURUSD continues and what seems like two important resistance levels have been breached...$1180 and $16.

    Meamwhile, some gunboat diplomacy of sorts is underway at the G20 in Brisbane.

    http://www.cbc.ca/m/news/world/vladimir-putin-stations-russian-warships-off-australia-s-coast-ahead-of-g20-1.2835021

    Looks like the weekends gathering will offer up an irresistable chance for Putin to deliver a broadside to the US/West while all eye's are focused on the G20 meeting and on him.

    With his inner Khruschev already out in the open how far will Vladimir go when he gets his opportunity to address the G20?

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  6. UnknownNovember 14, 2014 at 9:29 AM

    ZH suggests it may be related to the Swiss gold initiative. Would certainly be a game changer IMO, especially if you believe their gold had already been leased out!

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  7. Ophelia BallsNovember 14, 2014 at 9:49 AM

    This comment has been removed by the author.

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  8. Ophelia BallsNovember 14, 2014 at 10:06 AM

    This comment has been removed by the author.

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  9. UnknownNovember 14, 2014 at 1:23 PM

    Gold up big time and gold shares, just as predicted. Foreseen by very few. This will continue next week with gold going through $1200 like a knife through butter. Unfortunately, it will soon then soon resume its final decline, and it won't be pretty, but that will be the final bottom.

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