Not So Fast

Gold is down this morning and so are my Newmont Mines (NEM) call options. It just goes to show that regardless of where my options end up this coming Friday (re: $10 per contract or $0) -it never hurts to take something off the table. It looks like it was a good call to sell half of the position last Friday. I am still bullish on gold prices for the rest of the week before the Fed meeting - but something funny is happening with the yield curve this morning as bond prices are falling across the board and yields are increasing. The 10-year is now yielding 4.16% ! If the ten-year yield surpasses 5% that should be enough to kill off any short-term gold rally on its own. Let's see what develops however...........for this smoke and mirrors economy.

-BG