Gold Strength

Hey now, hey now
Don't dream it's over
Hey now, hey now
When the world comes in
--Crowded House

Gold marking 10 month highs this am. Gold is a bet on disorder, whether that disorder be monetary, social, etc.

Probably not coincidentally, minutes from the last FOMC meeting are due out this afternoon. Many anticipate that the Fed will reiterate its 'pause and patience' stance on monetary policy. An easy monetary stance by the Fed can be construed as being a step toward monetary disorder--given the large amounts cash created by aggressive central bank policies that would remain in the system.

With run-ups in many risk markets approaching 20% since chatter began nearly two months ago that the Fed would become more dovish, it is easy to see the release of the FOMC minutes as a 'sell-the-news' event. But I would definitely not bet on it, given recent market strength.

Will continue watching gold for clues...

position in gold