Take physic, pomp

Chart of the day is……

…..gold, the hourly candle.

So it turns out the nasty boogieman wasn’t a bomb dropped on an Iranian nuclear facility, or a Hurricane that knocked ot 30% of the US oil supply, but a small, endebted citystate known as Dubai. But whatevs, cos Naseem Taleb’s phone must be ringing itself off the wall this morning. Here’s what Deuschebank said today…

“The events in Dubai highlight the elevated level of sovereign risk heading into next year, the potential pockets of dollar strength that this can deliver.”

…..and I think that’s fair enough. It may be a total change in direction (unlikely) or it may be one of the DB “pockets of dollar strength” and from the looks of the gold rebound, there are still plenty of metals buyers out there. But one thing we can certainly do is call stupid on the “dollar is dead” chorus line of bleats, yeah? Because the US Dollar is still the place that money people run to when a problem hits.

UPDATE: Macro Man captures the sentiment well in this post, examining plenty of angles, too. Recommended.

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