Is This Why Gold Dumped And Stocks Pumped Today?
November 28, 2012 - 3:29pm
In the pre-market this morning, Gold had outperformed the S&P 500 by over 200bps for the month. By the close today (month-end settlement T-3) - given how synchronized gold and stocks have become - Gold and the S&P 500 will be perfectly unchanged for the month. Whether this morning's plunge in Gold (and rip in stocks) was the unwind of a major hedged position (or vice versa) is unclear - but the coincident reaction around the election suggests today's Gold move (and stock move) had a lot to do with each other - no matter how much they are blamed on cliff schizophrenia... S&P in ounces of gold - unch for the month now thanks to today... equities were bid up into the election (outperforming Gold by over 4% in the first few days), gave it all back and then some as Obama's election was announced - to underperform by over 4%; the last few days of silence from DC and today's snap m...
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