See this dreck being peddled at Kitco (by way of Gold-Eagle).
The gold market continues to see some technical selling pressure, finding little traction as sentiment in the manufacturing sector remains extremely negative, according to the Philadelphia Federal Reserve.
Wait, is there any other kind of selling pressure than “technical” selling pressure?
The Philly Fed said that its manufacturing business outlook showed a reading of negative 43.1 in May up from April’s negative reading of 56.6. However, the data significantly missed expectations as consensus forecasts were calling for a reading negative 40.
Okay so what, if the data had been better it would have been good for gold? Really??
Economic data has had little impact on gold as investor sentiment has been driving price action. Earlier this week gold prices pushed back to within striking distance of $1,800 but those gains have slowly eroded. In initial reaction to the latest data, June gold futures last traded at $1,741.80 an ounce, down 0.59% on the day.
This goofy statement is phrased as if gold has been rallying on sentiment despite the lack of positive (and I gather the underlying meaning to be traction in inflation) data.
And this my friends is why the inflationist gold bugs puke on days like today (The NY Fed’s Williams even ruminated publicly about the lack of inflation and the need for it). Oh my gawd, the inflation is failing!! Oh my gawd we all gonna die!! OMG regurgitate gold shares first, ask questions later because GDX is down 4% and the economic data still sucks and there is no inflation! Oh my gawd.
It never changes, never fails. Unhealthy investors are brought in during the inflationary/reflationary phases (large or mini) like the small one we’ve been in during this bounce since mid-March. They are promoted and lathered by the inflationist gold bug “community” but they have not only forgotten the face of their father*, they never knew it. They never learned about the real fundamentals.
Repeat after me: The gold sector needed a cleaning. The gold sector is getting a (thus far minor) cleaning.
* Old Steven King reference (I think).
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