All Eyes Now On Gold After World Experiences Second Black Swan Event - King World News kingworldnews/eyes-now-gold-world-experiences-s…/ After the world experienced a second black swan event last week and the ECB just announced a 1.1 trillion euro stimulus program in a desperate attempt to save the European banking system, today King World News is featuring a piece from one of the greats in the business which points out that all eyes are now on GOLD as global stock markets are set for a rough 2015.... First was a rumor the Fed had called an emergency meeting in reaction to various financial casualties caused by the SNBs unpegging of the Swiss franc. The thought was the Fed would supply some sort of liquidity to the system. The second rumor was that there has been a modified quantitative easing (QE) program worked out that is acceptable to Germany. The third rumor was along the same line in that the SNBs action almost assured the implementation of some sort of QE announcement at the upcoming European Central Bank (ECB) meeting; and that rumor has a ring of truth to it. Verily, the SNBs franc surprise looks like a preemptive move suggesting the Swiss fully expect a QE announcement at the ECB meeting. It also suggests the ECB is going to monetize the European debt, which should raise inflation expectations putting a tailwind in place for precious metals. While I am still not a fan of the metals, or commodities in general, a QE announcement could produce a decent short-covering rally given the oversold relationship between crude oil and gold (see chart below)...
Posted on: Tue, 27 Jan 2015 12:32:14 +0000
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