The Dow Jones Industrial average closed at 13279.32 yesterday – the highest close since December 31, 2007. It’s an old Wall Street adage that “selling in May” is a good idea, as markets tend to underperform in the summer. But given the tidal wave of “hot” money flowing around the world at the moment, it would perhaps be unwise to place too much stock in this idea. Given this prevailing easy money climate – and as long as US money supply growth continues chugging along at or close to double-digit rates – it wouldn’t be at all surprising to see equities continue to march higher.
Precious metals continue to consolidate, however. Despite a brief rally in gold yesterday that took the price up momentarily to within a whisker of $1,670, we’re back down around $1,650 again this morning – the “sell the rallies” mentality still strong among gold traders at the moment. Silver, platinum and palladium are facing similar headwinds, with the US dollar still continuing to hold relatively firm on a short-term basis at currency markets. Just as $1,650 seems like a magnet for gold at the moment, 80.00 on the Dollar Index is the magnet for the greenback.
We tend to spend much time on this site talking up the bullish case for gold and silver, but don’t forget platinum and palladium. Click on the following link to see WSJ’s Simon Constable outline the bullish case for palladium prices.
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Dow Floating On A Sea Of Funny Money
Published 05/02/2012, 07:43 AM
Updated 05/14/2017, 06:45 AM
Dow Floating On A Sea Of Funny Money
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