Gold Bears Mission Accomplished: Is the EUR next?

Reports revealing that Chinas growth is losing momentum are a blow to risk asset prices this Monday morning. Weaker than expected Chinese Q1 GDP growth of +7.7%, y/y (+8.0% expected), combined with the tired US data on Friday (retail sales and consumer confidence headlines) has equities, FI and commodities under pressure – it seems that cash is trying to be "King" for a day at least. The softer Chinese data has triggered a mass liquidation of EUR/JPY longs, the chief driver pushing the 17-member single-currency lower. The rest of the market continues to focus on gold, the precious metal that has managed to fall another $100 already in late Europe and before the US investor has managed to lick their wounds from Friday's dumping of 400 tonnes or $20-billion worth of futures on the COMEX.



Can Commodity price history repeat itself? So far, its mission accomplished for the commodity bears. The metal's back was broken early on Friday in NY ($1,540) and since then...