Gold caught a fairly obvious 'flight to safety' big this morning that was later pushed lower by the bullion bears, but still managing to close higher.
US equities were off about two percent across the board as the end of year paint bubble continued to get scraped off the tape.
There is also some element of a test of wills for Janet Yellen, who has now taken over the Fed's reins. Wall Street has been known to throw a taper tantrum or two to see if the new 'Chair' will be as pliable as the former Chairman. And few can live up to the servile hypocrisy of Greenspan, who never met a bubble he couldn't ignore.
Speaking of Chairman Bernanke, he has already announced a new post at the Brookings Institution. He will no doubt be free to think weighty thoughts, write his book(s), and garner some large speaking fees. At least he did not go to work directly for one of the Banks.
In the Comex inventories just shy of two tonnes came out of Scotia. Let's see if it turn up with Big Daddy Morgan, or just slips off into the sunset.
We are now in the February delivery month. Rik Green notes that the number of contracts standing for delivery there is substantially lower than February of last year, which was quite robust. The bullion available for deliveries at these prices is still quite thin compared to potential demand.
But without belaboring it, I think the trading emphasis in the bullion markets is joining its physical components and is heading east, leaving the Comex awash in less meaningful paper.
As a reminder, this is a Non-Farm Payrolls week once again, so we will have to see how the shenanigans are rolling, and keep another eye on any deliveries of bullion.
Have a pleasant evening.
