Gold Moved Back To The Middle

The price of Gold back to the middle of the most recent trading range, recovering a little this morning from Friday’s sell off. Mid-morning this past Friday, we saw selling in the Bond market sending the Ten Year Treasury yields from 2.33 percent up to 2.4 percent.

Subsequently, the price of Gold took it on the chin dropping over $ 10.00 dollars on this move. Future activity on the CME during that period witnessed over 40,000 contracts changing hands. That’s a lot of contracts moving in such a short period of time.

Over the past two weeks Bond traders favored longer dated issues over shorter dated issues as the tax reform plan seems more complex than previous anticipated.

Also effecting the Treasury sell off was the drop in German government debt prices after comments made by a European Central Bank official.

Washington Update

Some Republicans finally admit that if you itemize on your tax return you will most likely will pay more in taxes. What happened to the promise that this big tax cut will give everyone tax relief? Many Democrats claim it will only benefit the wealthy on Wall Street. And I’m shocked that no one is talking about the proposed plan to eliminate the AMT tax. That too, is a huge benefit to high-end earners.

Over The Pond

On Friday, Britain’s Prime Minister Theresa May announced plans to amend the EU Withdraw Bill to make it absolutely clear that Britain’s exit will be at 11:59 pm, Friday, March 29, 2019.

Most are surprised to hear this from the Prime Minister, because as it stands now, Brexit negotiations seem to be going nowhere.

You think we have gridlock in Washington? On the Brexit exit there are over 300 amendments and 54 clauses that have to be debated before Christmas. The other side of the aisle in Parlement promises to derail any negotiations, putting a stop or slow down to the departure.

In the meantime, if the 27 EU members agree next month that sufficient progress has been made on these issues, they will give a green light for negotiations to move forward on the questions of trade and how the transition to a new Post-Brexit negotiation will play out.

The Prime Minister is expected to meet today with business leaders hoping to set up a partnership between Britain and the rest of the EU.

Have a wonderful Monday.

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