Why Gold is Not Gaining on Greece

Gold investors may be dumbfounded this Monday morning by the inaction of the precious metal. The Greeks voted “no” over the weekend and stocks opened to turmoil on Monday. Uncertainty around the Greece issue has never been more prominent, and yet the SPDR Gold Trust (NYSE: GLD), which tracks the spot price of the metal, was relatively unchanged in the early AM on Monday. The reason is simple, the dollar factor still outweighs the safe haven factor for gold, and so as the dollar gained this morning, the upside for gold was stymied. Thus, it does appear the Greek Gods show no favor to gold. See the report on Greece & gold here.

Precious Metals Relative Security	Monday at Noon
SPDR Gold Trust (NYSE: GLD)	+0.2%
iShares Silver Trust (NYSE: SLV)	+0.5%
Market Vectors Gold Miners (NYSE: GDX)	+1.4%
Market Vectors Junior Gold Miners (NYSE: GDXJ)	+0.1%
Direxion Daily Gold Miners Bullish 3X (NYSE: NUGT)	+3.9%
Randgold Resources (Nasdaq: GOLD)	+0.9%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

BREAKING: Tsipras Conceding on Points, Schauble Unmoved – Beware Rumor, Conjecture & Negotiating Tactics

Be careful about reacting to the minute by minute rumor and conjecture dished out by European players with interest in maintaining financial market stability, and also beware the big news break that each media outlet wants to be first to report. Throughout this Greek crisis, there have been erroneous reports about resolution and breakthrough, and nothing has come of any of it up to this point. This morning, I awoke at precisely the moment Bloomberg TV was reporting Alexis Tsipras was conceding significant ground via a letter and based on a tweet from an FT reporter (his full report is below). But reports like these have misled investors in the past, as it seems the Europeans on both sides of the table have been careful to maintain order and stability in the euro and financial markets, and I believe at times have misled the media. So, let’s wait and see before we react. See the full report on Tsipras' letter here. 

Relative Securities	Yesterday	YTD
SPDR S&P 500 (NYSE: SPY)	+0.2%	+1.1%
iShares Europe ETF (NYSE: IEV)	-0.8%	+5.4%
WisdomTree Europe Hedged Equity (NYSE: HEDJ)	+0.02%	+11.9%
Vanguard FTSE Europe (NYSE: VGK)	-0.6%	+5.7%
iShares MSCI Germany (NYSE: EWG)	-0.8%	+4.0%
Global X FTSE Greece 20 ETF (NYSE: GREK)	+6.0%	-26.8%
CurrencyShares Euro Trust (NYSE: FXE)	-0.8%	-7.4%
iPath S&P 500 VIX (NYSE: VXX)	-1.0%	-35.1%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Euro Manipulation – I Feel So Dirty

The euro made a dramatic reversal that seemed to make very little sense Monday, and so I feel kind of dirty. The euro was down dramatically 1.9% versus the U.S. dollar in overnight overseas trading on obvious Greece concerns. Yet, by afternoon trading in the U.S., it was sharply higher versus the dollar. It was unnatural and had a lot to do with the actions of the European central banks plus a strangely timed news bit about Puerto Rico. I feel like my money has been touched inappropriately. See my report on euro manipulation. Article interests CurrencyShares Euro (NYSE: FXE), PowerShares DB US Dollar Bullish (NYSE: UUP), PowerShares DB US Dollar Bearish (NYSE: UDN), ProShares Ultra Short Euro (NYSE: EUO).

Disclosure: I'm long EUO and short UUP as a hedge and play on volatility. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.