China Doubles Down on Gold 05-28-15

We’re biding our time with gold. The metal has lost a bit of ground recently, given the strength of the U.S. dollar, but the bullish case for gold grows with each passing day. At a certain point, we can’t say exactly when, a stampede into the Midas metal will occur. A disorderly Grexit could do the trick, or perhaps further currency debasement and losses in the global bond market will serve as the catalyst. China certainly isn’t sitting on its hands while awaiting that day. Read more about China Doubles Down on Gold 05-28-15

Mixed Message 05-21-15

What’s a central banker to do? The Federal Reserve routinely releases the minutes of policy setting meetings three weeks afterward as part of efforts to provide clarity on U.S. central bank thinking. Investors and economists closely scrutinize those discussions. But rather than shed light on what’s ahead, the notes to the Fed’s April meeting, out yesterday, merely served to highlight just how uncertain are monetary policy makers these days, much as we surmised when it released its policy statement immediately following the April meeting. Read more about Mixed Message 05-21-15

Frack to Basics 05-07-15

The ADP Employment report yesterday signaled job market weakness with a surprisingly low 169,000 new hires last month, well below the 205,000 expected. Many economists use the ADP report as an advance guide to official monthly numbers from the U.S. Labor Department, despite the firm’s spotty record on this score. The consensus for the government assessment due tomorrow is for 220,000, an increase in non-farm payrolls and up from March’s 126,000. The unemployment rate, meanwhile, is anticipated to slip 0.1 percent to 5.4 percent.