Ares
21st June 2010, 07:11 AM
As Gold Hits Another Record High Of $1,263.
Even as investors increasingly sniff at the possibility of the CNY becoming the new reserve currency, buying up the Yuan with both hands, resulting in a provisional close of 6.7970, the highest since the 2005 revaluation, and even as algos cheer this move in the futures market, gold hits another all time record of $1,263. For full implications of what buying both stocks and gold at the same time, we refer you to the previously published (http://www.zerohedge.com/article/don-coxe-dissects-gold-oldest-established-store-value-moves-center-stage) essay by Don Coxe, but in a nutshell, it is a rather bad omen, when stock appreciation is being hedged for complete systemic failure. In the meantime, China's UST holdings just depreciated by a few billion in FX adjusted terms, and the end of the USD accumulation, as well as its negative trade balance, means that the country will now be a second-rate player in the Treasury market. We really hope the frontrunning algos have it right this time.
http://www.zerohedge.com/article/usdcny-closes-5-year-low-67970-gold-hits-another-record-high-1263
Even as investors increasingly sniff at the possibility of the CNY becoming the new reserve currency, buying up the Yuan with both hands, resulting in a provisional close of 6.7970, the highest since the 2005 revaluation, and even as algos cheer this move in the futures market, gold hits another all time record of $1,263. For full implications of what buying both stocks and gold at the same time, we refer you to the previously published (http://www.zerohedge.com/article/don-coxe-dissects-gold-oldest-established-store-value-moves-center-stage) essay by Don Coxe, but in a nutshell, it is a rather bad omen, when stock appreciation is being hedged for complete systemic failure. In the meantime, China's UST holdings just depreciated by a few billion in FX adjusted terms, and the end of the USD accumulation, as well as its negative trade balance, means that the country will now be a second-rate player in the Treasury market. We really hope the frontrunning algos have it right this time.
http://www.zerohedge.com/article/usdcny-closes-5-year-low-67970-gold-hits-another-record-high-1263