Gold was not able to hold onto the $1600 level this week, closing out COMEX trading at $1595 per ounce. Not even weak U.S. GDP and unemployment data released this morning was enough to lift Gold coming into the end of the quarter. However, after a brutal 5 month sell off that brought it back to test the $1550 level, Gold put in the first positive monthly close since August of last year.
While not a reversal signal by any stretch of the definition, tracing an inside bar for the month of March does send a strong signal that selling volume is lightening. With mining and exploration stocks trading at historically low valuations relative to the underlying commodity investors should begin looking to rotate out of over-priced broad equities and into the unloved ones.
The relationship between the Euro (AMEX:$FXE), the U.S. Dollar (AMEX:$UUP) and the Singapore dollar has been a fascinating one all year. As I’ve stated in previous articles I am of the opinion that watching just the $EURUSD cross is not enough to understand what is happening behind the scenes of the central bank press conferences and policy statements. QE 3 was announced by the Fed in mid-September right after the ECB announced unlimited if conditional QE to deal with the problems in places like Spain. And yet, nothing changed in the monetary statistics of the Federal Reserve while the conditionality part of the ECB’s new policy dominated the proceedings and no new bond buying was actually done.
There was a whole lot of sound and fury and not a lot of action.
The Japanese engineering conglomerate Hitachi (PINK:$HTHIY)has decided to expand rapidly in the UK’s nuclear sector by investing $1.12 billion to purchase Horizon Nuclear Power from the German firms E.On and RWE NPower who are walking away from nuclear power following the German government’s policy to reduce nuclear energy operations after the Fukushima incident. The apparent irony here is that Hitachi, based in a country that was the epicenter of nuclear disaster, is replacing the German companies. The U.K. based engineering firms Babcock International and Rolls-Royce have subsequently planned to sign contracts with Hitachi. The country currently has 10 nuclear power stations, which operate 17 reactors that fulfill about 18% of Britain’s total electricity requirements.
Peter Pham is an author, international fund manager, and a registered financial director by the Cayman Monetary Authority (CIMA). In 2013 he published his first book entitled, The Big Trade: Simple Strategies for Maximum Market Returns. He currently manages the portfolio of a global hedge fund and runs an asset management company, Phoenix Capital. (read more)
The Big Trade: Simple Strategies for Maximum Market Returns
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