HJDS Travel Group

The protesters win the war in Egypt, as the final battle comes to an end and Mubarak steps down. Markets continue to make fresh highs, and so are treasury yields. You can see traders already had this news priced in. The dollar continues to get whacked, and if there was any uncertainty the situation was systemic, this wouldn’t be the case.

Normally when uncertainty hits the market, the dollar gets a flight to safety bid, but the dollar has continued to weaken over the period. If traders were really fearful you would have seen the “risk-off” trade- money flows out of stocks and into bonds, the U.S. Dollar, and Gold. Instead traders were not fearful at all and decided to just sit on their hands. Regardless, the bigger story looms and Inflation is rearing its ugly head!

The Egyptians finally overthrow a dictator they had in place for 30 years, and all because food prices spiked. Will contagion spread to the nations around Egypt? Traders will be watching to see how this will play out. I believe this is a small battle in a much larger war!

In times of uncertainty gold acts as an inflation hedge. Since the Egyptian situation posed no immediate threat, we should have seen gold sell off, but defying all odds gold has continued higher on the news. It looks as if its going to make its way to new heights.

Equities are still way over-bought due to the liquidity forcing money into the stock market. The bears think the market is inflated and are waiting for their time to pounce and the bulls want the market to sell so they can buy at lower prices. When both parties want the same thing, neither tend to get what they want. Hence the market keeps grinding to new highs. Gold continues to go higher primarily to issues in the European and U.S. debt markets.

To learn more about buying gold coins, or to follow up to date Gold News contact Precious Metals Brokerage Group (PMBG) at 1-866-775-3131 or visit our website at www.pmbg.net. Our account executives are ready to assist you!

categories: Gold News,Gold Forum,Egypt,Protests,Gold IRA,Gold Prices,Stocks

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