Gold prices have surged this morning to their highest since October (over $1221) as leveraged hot money greatly rotates its repo-driven way out of risk assets and into Greenspan’s alternative currency. However, there is a bigger problem for the biggest pairs trade that no one is discussing – apart from us – the decoupling of the long Nikkei, short gold trade as the repo market folds in on itself from the suck out of $80 billion in collateral by China…
Gold back at its highest since October…
and the Gold/Nikkei trade is coming undone very quickly…
See here for details on the Gold/Nikkei trade and its implications…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1Gerbt2 Tyler Durden