How Does Dow 16,000 Impact the Gold Market?

Your next video will start in
  • Info

  • Comments


Nov. 18 (Bloomberg) -- Bloomberg's Alix Steel and Bloomberg Tradebook’s Greg Bender, put futures in focus with a look at what the Dow Jones Industrial Average hitting the 16,000 level means for the gold market in "On The Markets." They speak on Bloomberg Television's "In The Loop."

As far as the timing of what is going on in the gold market around yellen, which could not be more bearish than right now, people are starting to look at year-end and calling it an woody year.

It is part of that moving out of gold into stocks, rebalancing towards the end of the year?

Ok, is there a pickup in january or february once that is over?

I do not think of the fundamental backtrack is going to change that much.

If anything if the taper happens earlier in the spring, say around march, we have a pick up in interest rate.

That is just more headwind.

The dollar index is more heavily weighted to the euro?

Laying on other currencies as well?

Like it could be.

One thing we are watching right now is if the dollar yen is going to break against the upside.

It is not going to lighten up.

For the gold or the dollar yen?

For the bullish dollar yen, which is not good for gold.

Talking about investor psychology right now, is it him thing long positions at the end of the year?

-- is a dumping long positions at the end of the year?

People are not only reducing long's, they are adding shorts.

Gold options volatility is at its lowest level in months.

Now, options traders in gold are not worried about it going lower, they are worried about spikes higher.

Right now it is trending lower.

Down to where the volatility is.

It is telling me that options traders are not positioned at all for a rally in gold.

Quickly, other metals, like silver, moving into key support levels versus stocks at all time highs?

The gold silver cross, which we are watching very closely, is a rally that you would expect in a broad weakness of metals because gold is the lower band metal.

The other thing we are watching is copper.

It has really been trading sideways.

Which speaks to asia and china as well.

Greg, thank you so much.

We are "on the markets," again in 30 minutes.

"market makers," up next.


This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change