Wednesday October 09, 2013 08:50
Gold should have shown some upward bias on the announcement of President Obama’s choice for the new Fed chief, Janet Yellen, who, assuming confirmed, will take over helicopter Ben’s chair position at the Fed next year. Yellen has a reputation of being a dove, firmly behind the bond purchasing program. The market is pricing in a solution to the debt ceiling negotiations and the current “outside” influences - physical demand, momentum, geopolitical risks - are all somewhat negative, which were factors that gave us pause last week, suggesting the market looked heavy. I still would strongly suggest to traders running a book to cover as they go because the risk is significant to the upside if the politicians in Washington blow it.