Swiss National Bank makes a pledge, gold futures marks time at $1900.

The Swiss export sector is hurting since the Swiss franc has been rallying over the past weeks as a percieved safe haven. To increase exports, the fiat currency has to be devalued. This moves underlies the fact that the global race to the bottom in fiat currencies has taken an even more serious turn as even the strongest economies cannot survive without debasing their curreny. The Swiss National Bank has pledged to buy foreign currencies in unlimited quantities setting a minimum exchange rate of 1.20 francs per euro.

Investors now have only gold as a currency that cannot be devalued.  Gold is hovering around $1900 today as the big margin requirement hikes, placed just a couple of weeks back, get brushed aside.

Pe-market the US stock futures are lower again today with Dow Jones futures convincingly below the psycologically important level of 11000. The currently trade at 10974.

The unravelling of the trust in fiat currencies is in full swing. Keeping the principal intact is becoming crucial, hence the move by Central Banks worldwide to shore up their gold holdings, and for investors to move to the only assest that is not being devalued, that is precious metals.

Advertisements

Gold and Silver futures shining

Some bank is going under? Precious metals futures are up strongly in the morning today. Gold futures are up 1.75% while Silver futures are up 2.4% as of now.

Expecting a surge in GDX and HUI today as they take out current resistance at 42 and 610 respectively.

The Greek tragedy is now in Act unknown, and the drama has not yet ended. European banks are on hook, and thee is no way out except a default. Let it happen, Europe, and get over it Europe.


Pre-market futures marginally up

Dow futures at 11607 with the low at 11534 when Europe weak manufacturing numbers came in. So a healthy move up from the lows.

Gold futures are consolidating around 1800-1850 level. And Silver futures biding time around
41.50-42.


Gold futures back above 1800

So much for the past 3 days sell off in gold. The gold futures just thrusted past 1800 while the equity indices rise to resistance on vapor volume again.

My fav gold stock, RGLD, at another all time high.


Futures red in pre market

Dow Jones futures are down -84 before the open at this time. Gold and silver futures up 1% and 1/2% respectively. Banks remains under pressure.


Gold and Silver futures sparkling

As Gold futures sit comfortably above $1900, and targeting $2000, perhaps this week, those who are long spam and short gold may want to consider unwinding that trade at this point those who are long USD and short gold may want to consider unwinding that trade at this point.