06 April 2011

Gold : Safehaven from Fed Accident

  • Gold on the rise again, taking out the previous all time high of 1447. Can't seem to find a reason for the move on this relatively quiet evening. Not that I need to know why.
  • Bernanke : “I think the increase in inflation will be transitory but we have to monitor inflation and inflation expectations extremely closely because if my assumptions prove not to be correct than we would certainly have to respond to that.”
  • Wishful thinking about transitory? Perhaps this explains the gold move. Central bank too relaxed about inflation. If they leave it too late the USD gets crushed. Hence buy Gold.
  • Took profit on some of my long held position tonight at 1449 and 1454 (Jun11). Trying to reduce core risk (short USD) as P&L approaches 2011 high water mark (=2011 budget) achieved on 08Mar. Then the Fukushima Black Swan on 15Mar almost took everything away and I swore then that if I get back here, I will not let it disappear a 2nd time. Finger ready to hit eject button, strong trending markets notwithstanding.
  • [Squared off long AUD/USD @ 1.0344 and bought back some USD/CAD @ 0.9636 as per above core book risk reduction]

1 comment:

Taichiseal said...

Also reducing Core short USD risk so as to turn short EDZ1 hedge into spotlight. Think ED will come under pressure in the days ahead with ECB, China tightening etc.