If global central bankers were traders on the floor, they would be crowded on the top step of the trading pit with their hands facing inward shouting “buy, buy, I’ll buy it all.” The roar of the global central bank liquidity pit got louder and louder this past week.
Gold futures prices charged over 8% higher in the past three weeks and the latest liquidity train is just pulling out of the station.
A man of his word, Mario Draghi, European Central Bank president, announced this week a potentially unlimited bond-buying program aimed at preserving the euro. Buy, buy, buy! News that August U.S. nonfarm payrolls missed their mark rather dramatically—with a 96,000 increase in jobs, versus an expected 130,000 increase, only helped to bolster rampant speculation that the Federal Reserve would pull the trigger on another round of monetary accommodation at its upcoming confab on Sept. 12-13. Buy more!
