Gold's Quick Move Higher Raising Eyebrows
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After being the market's whipping boy for months, gold is notably higher Wednesday with a sharp mid-day surge. Gold ETF (NYSE: GLD) last traded at $120.30, up 2%, and spot Gold is up about $23 to $1247.20.
Today's upside would seem counter intuitive to economic data from ADP showing private sector job additions were much stronger than expected. The better jobs report, ahead of Friday's all-important government non-farm payrolls report, would make a stronger case for quicker Fed QE-tappering - a negative for the gold thesis.
Still, gold has had a mind of its own during the recent sell-off; it doesn't appear to be responding to classic fundamentals. So today's move should not be a complete surprise.
Despite the negative sentiment in the precious metals, some have pointed to recent bullish option activity which suggests a positive shift in sentiment. It is unclear if this is sustainable.
Today's upside would seem counter intuitive to economic data from ADP showing private sector job additions were much stronger than expected. The better jobs report, ahead of Friday's all-important government non-farm payrolls report, would make a stronger case for quicker Fed QE-tappering - a negative for the gold thesis.
Still, gold has had a mind of its own during the recent sell-off; it doesn't appear to be responding to classic fundamentals. So today's move should not be a complete surprise.
Despite the negative sentiment in the precious metals, some have pointed to recent bullish option activity which suggests a positive shift in sentiment. It is unclear if this is sustainable.
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