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May 26 - Gold $388.10 down 10 cents - Silver $6.04 down 2 cents
Early Gold Surge Crushed By Cabal/HUI Up 9 In Row
"More than any time in history, Mankind faces a crossroads.
One path leads to despair and utter hopelessness,
The other to total extinction.
Let us pray that we have the wisdom to choose correctly"
-Woody Allen
Surprisingly, gold came in very firm, quickly running up almost $4 on the day. However, as always, it gradually sold off after the first half hour/hour, this time into the 9:30 AM OTC options expiry. Also, as often is the case, Goldman Sachs was the designated capper for The Gold Cartel this morning, putting out their "DO NOT PASS GO" sign. Once that sign went up, gold was finished, down she went. Wonder how long it will be before The Gold Cartel is forced to let bullion trade like a normal market – having gold surge in the first 60 minutes, set back, then go and make new highs, closing $10 higher for the trading session?
Perhaps as a result of renewed terrorists threats, gold was very firm in the early going before news came out which was all dollar bearish, gold bullish and stock market bearish. Here it is:
May 26 (Bloomberg) -- U.S. orders for durable goods fell 2.9 percent in April after two consecutive gains, still keeping demand at a level that supports growth in manufacturing, a government report showed. A drop in bookings for commercial aircraft and automobiles led the decline.
Orders for products made to last at least three years decreased in value to $191.3 billion after jumping 5.7 percent in March and 3.9 percent in February, the Commerce Department said in Washington. Excluding transportation equipment, orders fell 2.1 percent, the first drop in five months, after a 6.3 percent rise. Compared with a year earlier, all orders rose 12.4 percent.
May 26 (Bloomberg) -- U.S. sales of new houses fell 11.8 percent in April to the slowest pace in five months as mortgage rates rose.
Some 1.093 million new single-family homes were sold last month at an annual rate, compared with a record 1.239 million in March, the Commerce Department said in Washington. Sales of 1.085 million in 2003 made it the best year ever.
Higher finance costs may start to slow the pace of new-home buying, economists say. The average rate on a 30-year mortgage has jumped by almost a percentage point from a nine-month low of 5.38 percent reached in March as demand for goods and services rose and companies added workers. An improving labor market may help limit the slowdown in housing. –END-
Both of those numbers were substantial negative surprises. If those numbers weren’t bad enough, the oil inventory numbers surprised also:
*The DOE was looking for the crude stocks to rise 1.6 million barrels, gasoline to rise 1.6 million barrels and distillates to rise 1.2 million barrels.
*What they got was crude coming in flat, gasoline falling 700,000 barrels and distillates falling 500,000 barrels.
Resistance between $390 and $395 proved to be effective today. We need a move through $395 to give gold some serious legs.
Not much else to bring your way regarding gold. The open interest rose a sizeable 6346 contracts to 252,665, which indicated new spec buying yesterday with the crooks taking the sell side. Same drill today.
Silver came in higher and then drifted off, looking to fill the gap it left yesterday. It may have in the futures pits, missing by only a penny in the cash market. The silver open interest fell 25 contracts to 88,330.
Time to watch the silver warehouse stocks. They are finally below 120 million ounces, having dropped around 750,000 ounces the past two days.
A very sharp and successful floor silver trader, one who trades on the technicals, says if silver trades on the upside tomorrow at any time, it should take out key resistance at $6.17, basis the July contract and then head for $7.