Investors are not so patient, and Putin is not patient either. He told Obama to try to find a solution on the budget crises as soon as possible. Investors are tolking to Obama thru VIX. It`s going up as we now are in the second week with the shutdown. Gold is now at $1321, and it seems like investors are sitting on their hands now.
Russian President Putin warned Presiden Obama to solve the debt/budget crises as soon as possible. Many investors are now very nervous as we are in the second week with no solution on the budget crises.
The markets was up on friday, down again on monday. It goes a little bit up, and a little bit down. In sum, it goes sideways. So far. Investors are waiting for october 17. That date will be a date we will remember in the future I think.
December Comex gold was last up $13.80 at $1,323.80 an ounce. Spot gold was up $12.50 at $1324.25. A weak dollar were bullish for the gold yesterday as it rose up with good gains. As the markets go down, and the fear goes up, the safe-heaven precious metal goes up.
The world`s largest economy China will be back from it`s Golden Week holiday season, and that could increase the demand for the yellow metal. The holiday for India starts very soon, and that can affect the gold prices with the consumer spending in India.
We can`t get any U.S economic data because of the shutdown. The FOMC minutes will be launched on wednesday and other people from the Fed officials will be speaking later on this week. Investors will scrutinize every word they say and that will have a huge impact of the financial markets.
The U.S Treasury Department told the U.S government on thursday last week that default would damage the confidence to the U.S economy and in addition increase the government`s borrowing costs.
A default could allow rating agencies to downgrade the U.S debt, which in return can impact the Treasury market. It can affect the price of Treasury bonds and notes, and if they are used to hedge in commodity markets, then the investors need to pay more money. The American bonds are used as collateral by futures commission merchants. That`s why the commodity markets can be hit in a ripple effect.
Below you will see the new $100 bill. It`s the first redesign since 1996 with better security and harder to forge. Nice!
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Ket Garden
Shiny bull 