Gold: BOJ hurts, GDP Weak, and China Doesn't Care

Gold

Markets Overnight

USD stronger, Yen weaker on BOJ continued deflation concerns and bond puchases. Stocks lower in Asia, and EU. US futures were lower. Gold and Silver are sliding still.

Chart via finviz

Precious Metals:

Yen and GBP weakness are not helping today

Interactive charts HERE

Data Dump

GDP 8:30am- 2.2% expectations
GDP UPDATE: 1.9% comes in
Durable Goods 8:30 am- does it bounce form November's -4.5%?
U of M Sentiment 10:00 am

Trump Policy Watch

Trump can issue policy from the podium. Whether markets believe his issuances or not is their choice. Regarding the Wall as a proxy on things to come: Mexico’s President Pena Nieto cancelled a trip to Washington. The White House responded with its idea for 20% tax on Mexican imports. Followed by SPICER: NOT READY TO ROLL OUT BORDER TAX AT THIS TIME.

Whether he wants a wall or not, he cannot declare one via Executive Order unless it's an emergency. POTUS can state policyintentions, but enacting them is a different story. That is a Congress thing. And this should be noted for behavior patterns in future trade policy implementations as they affect Gold via inflation and taxation.

h/t Brian Brady on EO education

Inflation Watch

BlackRock's Russ Koesterich says inflation Is surging, so buy some gold

Housing costs are now rising at the fastest pace in nearly a decade.Medical inflation is not as contained as many had hoped.Wages are rising.Consumer inflation expectations are also starting to tick higher. Story here.

Meanwhile, we just found a fly in our 1970's inflation thesis.

"Strong global inflation of the 1970 and 1980's was partly a demographic phenomenon that is unlikely to be repeated"

h/t ‏@HayekAndKeynes for quote and chart. Recco follow

Rooster Arise!

EDIT- Pointed out in comments below that the December number may be off by factors of 100 or so. Possibly. Note that is Swiss. So what they bought via Switzerland, they may not have bought via another seller. Total purchases are more relevant. Looking into aggregate demand, as well as BBerg data. If chart is right, may be more a comment on the Swiss than China.- TX for heads up

Chinese Lunar new year starts tomorrow

-Soren K.

Good Luck