Inflation well anchored. Closely monitoring the inflation expectation. preserve the FED inflation fighting credibility.
says later this yr, growth to accelerate.
downside risk to growth remains.
act in a timely manner to support growth and prevent downside risk.
some trading ideas. 9080 looks like a good shorting position.
Short AUDUSD 9050
stop 9080
target 8830
Short GOLD 915
Stop 923
Target 880
If you made monies from this call, pls click on the GOOGLE link
There used to be the ECB Gold Sale that overhang the market, nonetheless Gold still manage to rise year on year. Now we have a double whammy, the IMF Gold Sale. During the last G7 meeting, IMF got the approval to proceed with Gold Sales subject to US congression vote.
IMF is using Gold Sale to buying high yielding investment to generate cashflow for their operation.
Short term, this is negative for Gold, but long term highly beneficial. Gold would become more liquid, more tradeable.
In order to keep the Gold Sale profitable, the parties concerned would likely keep Gold price at its current level of 900 - 950 USD before their first sale go through. However, the Gold Sales would probably be privately placed out, at the prevailing market price.
Last time round, the London Exhchequer Gordon Brown sold Gold at 250 USD, which actually mark the starting point of the current rise in Gold.
Would Zoelick (IMF president) mark the top in Gold this time round when sales start ?
or more pertinent, would Gold be at 1000 when IMF Gold sale starts ?
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