Surviving Algo Hell

by Craig Hemke
Sprott Money

So I guess this is how it works now. The dollar index rallies back to reclaim 50% of its losses from Friday, and this prompts enough HFT algo selling that we lose 100% of Friday’s gains in the COMEX metals.

As you know, I’ve been doing this for nearly ten years now. Over that time, I’ve seen all sorts of temporary HFT algo correlations that have driven me mad. There was the USDJPY link in 2014-2015. Then there was the yuan link in 2018. But all the while, changes to actual fundamentals drove precious metals prices higher regardless.

And these are unprecedented times. We have pandemic-related economic stress, massive fiscal deficits, direct central bank debt monetization, surging global physical demand…all FUNDAMENTAL items that should be driving price higher.

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