Gold Nears 7 Year Highs As Stocks, Bonds Shrug Off Soaring Geopolitical Risk

After an ugly open last night in futures trading, the machines went on a buying spree lifting the majors back to unchanged. Notice the weakness at the Asia open and European open and buying panic at US open…

BTFWW3?

And why not – who would be worried by this?

پاسخ کاربران ایرانی به انتشار تصویر پرچم آمریکا توسط ترامپ. pic.twitter.com/fWU2jVkSxL

— روزنامه ایران (@IranNewspaper) January 6, 2020

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عاجل : التلفزيون الإيراني بث قبل قليل نشيد الحرب الإيرانية – العراقية في إشارة إلى حالة الحرب التي قد تشهدها المنطقة بعد مقتل سليماني . هذا النشيد ومترجم إلى اللغة العربية. pic.twitter.com/2NnNxYDOKW

— محمد مجيد الأحوازي (@MohamadAhwaze) January 6, 2020

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So far in 2020, bonds and bullion are easily outperforming

Source: Bloomberg

Chinese stocks ended mixed overnight (with small cap, tech outperforming)…

Source: Bloomberg

Despite buying pressure all day, European markets could not get back to even…

Source: Bloomberg

In the US, Trannies underperformed, Nasdaq led, and The Dow, S&P, and Small Caps clung to unchangedish, pushing notably higher into the last few minutes…

 

AAPL had an ugly open, but once again was panic-bid back into the green to test $300…

 

And we note that AAPL and its volatility remain notably decoupled…

Source: Bloomberg

VIX and stocks remain decoupled but for the 4th day in a row, vol was clubbed like a baby seal intraday…

 

 

Source: Bloomberg

Treasury yields ended the day higher with the long-end underperforming (2Y +2bps, 30Y +4bps)

Source: Bloomberg

The 30Y Yield found support from a few weeks ago and bounced (still lower yield on the year)…

Source: Bloomberg

Similarly, the yield curve steepened off support, after flattening dramatically in the first two days of the year…

Source: Bloomberg

The dollar extended its decline from Friday’s highs…

Source: Bloomberg

Cryptos are higher after the weekend’s rising geopolitical tensions with Ripple soaring…

Source: Bloomberg

Bitcoin was up again – 4th day in a row, longest streak of gains since July – back above $7500…

Source: Bloomberg

Commodities were bid last night (crude and PMs) as mideast tensions rose but the US equity market open prompted selling…

Source: Bloomberg

Gold held on to its gains from the weekend’s headlines…

Pushing Spot Gold to its highest since April 2013…

Source: Bloomberg

But WTI Crude ended unchanged, giving back the risk premium…

 

Finally, while the dollar is clinging to support against its also-declining fiat friends, its is collapsing against gold…

Source: Bloomberg