Who’s the April Fool?

Posted | 01/04/2014 / Views | 2683
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The gold price came off again last night as the US sharemarket rallied, highlighting one of the true paradox’s of the current market.  Last night our time US Fed Chair Janet Yellen gave her most Dovish speech yet saying the continued poor employment situation in the US means the economy will need support for longer (support = QE and zero interest rates).  So it’s “bad” news yet the sharemarket rallies because it means more free money for Wall Street.  This fresh off last month’s speech indicating all is good and a likely rise in interest rates sooner than expected??? This inconsistent ‘good again, bad again’ messaging from the Fed is ultimately very good for gold (especially when you can buy at these prices) as it reeks of a market on the cusp of ‘very bad’ whilst the fools pretend all is good.  Whilst on the topic of Central Banks and in the spirit of April Fools Day have a watch of this timeless skit.  PS There’s some ‘gold’ at the end of it…