Macro Dragon: At $1600 Gold is Tactical Short in the Macro Dragon Portfolio...
Macro Dragon = Daily Cross Asset Views. In today's Macro Dragon we highlight the worsening EZ data from overnight with EURUSD continuing to break lower. At the same time the DAX is unfazed breaking to new highs this week, perhaps as a function of the euro weakening. We discuss the key strategic investment views of the Macro Dragon, US vs. Row as well as the META trend of the them all - one cannot hold enough US Duration in KVP's view. Lastly on a tactical basis, We feel Gold back at $1600 is getting ahead of itself given the combination of stronger USD, higher yields & general risk-on sentiment in markets. Whilst we are structural bulls on gold, the MD would be tactically short at these $1600 lvls.
