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Jakobsen: Why I'm selling gold
Saxo's Chief Investment Officer, Steen Jakobsen, is selling gold this Tuesday. Technically, he says there are indications that gold's turning down. And increased speculation about the Fed tapering its bond purchases this month will not be good for the commodity, he says. The FOMC meets again on January 28th.
He says the year has started with people being extremely positive on US growth. They're long dollar, especially against the yen, so it heightens the possibility of that increasing in this early part of the year. What naturally follows from that, he says, is lower fixed income prices which isn't good for gold.
Steen's bought a 1200 Gold Put, Expiry:Feb-25 — present price 7.5/9.20 (or 750/920 USD per contract — note also the spread comes in when the US starts trading).
Read more about Steen's strategy here:
http://www.tradingfloor.com/traders/steen-jakobsen
01:30 minutes
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