Beiträge von ThaiGuru
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CARTEL CAPITULATION WATCH
All is well suddenly on the US economic scene. The DOW reacted accordingly gaining 97 to 10,497, while the DOG leaped 42 to 2057.
Word has it this stunning jobs increase was leaked minutes before it was announced to the public. Bonds and gold sunk sharply right before the number was announced. This should be of no surprise to any Café member, not when you have the most corrupt enterprise in America's history running our government.
It’s not just me ranting and querying. From Jesse:
In response to a question from the Bloomberg interviewer about a possible leak of the economic news from the BLS, and the huge bond action about a minute or two before the official release, which many traders noted, Elaine Chao said that any television station who makes such charges faces possible 'serious legal action.'
When the interviewer pointed out that it wasn't the television station making charges, but traders pointing out some very suspicious and significant trading action ahead of the release, Elaine Chao said it wasn't true.
Interviewer: "Could there have been a leak?"
Chao: "No. We have many procedures in place."
Interviewer: "Will you be investigating this incident?"
Chao: "No. It did not happen."
-END-
Just like it could not be possible the US has rigged the gold market for many years.
It’s not so cut-and-dried Ms. Chao:
ODJ CFTC `Looking Into' Unusual Mkt Moves Before Jobs Data
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Fri Apr 02 12:46:17 2004 EST WASHINGTON (Dow Jones)--The Commodity Futures Trading Commission is "looking into" unusual movements in bond-futures contracts and other financial instruments that occurred minutes before the government released its employment report for March, a spokesman said Friday.
Alan Sobba, the CFTC's director of external affairs, said the CFTC is examining the matter in consultation with other federal regulators. He declined to say whether the inquiry constitutes a formal investigation, saying the CFTC has a practice of not discussing investigations. But he said the CFTC doesn't frequently conduct such inquiries.
"People wouldn't be talking about this if the markets hadn't moved - and that's right before our eyes," Sobba told Dow Jones Newswires. "So the question is what really happened, and why, and we're looking into that."
The Labor Department's employment report for March showed the largest increase in nonfarm jobs in four years, a gain of 308,000. Prices of bonds and other financial instruments seldom move much in the minutes preceding a major economic report. But traders said that minutes before the report was released at 8:30 a.m. bond futures and the dollar began to move. That prompted speculation that the report may have been "leaked," possibly in violation of the law.
Government officials initially focused on a Reuters (RTRSY) news report, published on Yahoo Inc.'s (YHOO) Yahoo News, that carried an 8:28 a.m. EST time stamp. But a Reuters spokesman said that time stamp was incorrect, the result of a "defective clock" in a computer system in London through which the news report was transmitted. "We sent out the story at the proper time, at 8:30:0001" a.m. EST, said Steve Naru, the Reuters spokesman.
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Meanwhile, back at the ranch, the real jobs story:
Gateway closing all its retail stores, eliminating 2,500 jobs
Thursday, April 1, 2004
(04-01) 14:56 PST POWAY, Calif. (AP)
Troubled computer maker Gateway Inc. announced Thursday it will shutter all of its retail stores next week, eliminating 2,500 jobs.
The company, based in the San Diego suburb of Poway, said its 188 stores will close on April 9 and workers will be let go as the store operations wind down.–END-
The bond market was creamed on the bond news, dropping over 5 points at one point. This will bear watching in the weeks to come.
GATAs Mike Bolser:
Hi Bill:
The Fed added $3.25 Billion in repos today April 2nd 2004 against a fairly large expiration of $11.25 Billion. This action caused the repo pool to fall to $25.83 Billion but left intact the up swing in the pool's 30-day moving average.
At this hour (11AM) the DOW tracks up at 10,450 and as predicted it has begun to claw its way back from what appeared to be crash mode although its 30-day ma has yet to turn back up. But we know from the repo pool data that the Fed was standing by during the last dip to gently catch the DOW and steer it back up to its "appropriate" trend line.
Having this information greatly reduces the level of anxiety that would otherwise burden our analysis. We know where the DOW is going but we also know where the dollar is going and they are destined to move in opposite directions so our task is to choose investments that are enduring in this inflationary climate.
Precious metals, natural resource firms with no debt and low PEs (especially energy and natural gas in particular) are good selections for the prudent investor these days. However, I am a bit worried that the Fed's primary dealers may be shorting the PM equities in a sizable way thus creating the oddly weak trading pattern seen lately in the HUI. If one has the metal in hand that possible issue is avoided. Alternatively, if one chooses the higher risk, smaller exploration firms you may find a more natural precious metals trading pattern.
Now that the LBMA silver mystery has been solved we can continue to look for a firm and sustained up-tick in daily volumes as the marker for an exhaustion event. I am heartened by the many reports of long delays in delivery of silver bullion, this would not be the case were there no problems at the major exchanges.
MikeChuck checked in with a fun one Friday morning :
These news driven reactions remind me of the road runner cartoons when the victim always falls for the bait. After a $45 run in gold, it is about what you would expect. Everyone head for the exits at the same time. I would expect to see some more bearish public statements over the weekend. Markets will do whatever they must do to keep the public from making anything. But today undoubtedly will be ugly. Chuck
Houston’s Dan Norcini:
Hi Bill:
I know you will be trying to get Midas written between settling in and getting to the conference so this will be short and sweet.
The Commitment of Traders thru Tuesday of this week (3-30-2004) reveals an increase of some 13,000 contracts over the Tuesday of the previous week. What I find particularly revealing this week is something that Midas has been sounding abroad now for many years. The only thing keeping gold from exploding upward is the price rigging game being played by the bullion banks at the bequest of the Feds and their own derivative damage control interests. This is particularly evident this week as one scans across the page looking at the totals for each category and the changes from the previous week.
For the last two weeks, the funds had actually been increasing their short positions and thus were responsible for some of the selling that has contained the gold price of late. I mentioned in last Friday's analysis that I was expecting that to change as short covering was in short order for those guys since all the technicals were pointing upward and funds are typically block box players who follow the technicals over against a fundamental view. Why they were short in the first place was something I was having trouble understanding. My guess last week was that perhaps they were expecting the cartel to clobber the price and had positioned themselves for that sort of thing. Well, as of Tuesday this week, it didn't quite work out so well for the short funds. They covered in a huge way lifting over 7,000 contracts that they had put on at much lower levels for a significant loss. Serves them right for violating their own black box signals.
The amazing thing is that not only did the gold cartel absord their buying as they covered those 7,000+ shorts, they also absorbed the entire amount of new fund longs (15,400) as well as the new longs put on by the real commercial interests in the market which was some 3,775 new long contracts. All told the cartel added a breath taking 27,265 new short positions to cap the price rise! And that was just thru Tuesday and does not take into account the last three days.
The little specs pretty much cancelled each other out as longs were selling and shorts were buying almost to the same tune with a slight edge going to shorts who were covering at a loss as well. The goon squad absorbed all 900 or so of those purchases as well.
Translation - almost every bit of selling that was done in gold for the last week was done by one group - the gold cartel. That's it. That is absolutely nauseauting and testifies to the blatant rigging scheme that is taking place before our very eyes. The neat thing however is that these guys cannot hide their footprints with the release of this Commitments Data as it shines the light revealing their works of darkness.
Additionally, since the release of the Tuesday data, Open Interest has further increased another 12,000+ contracts as of yesterday (Thursday 4-1-2004). My guess is that in next week's report we will see further short fund liquidation taking place and to no one's surprise, another obscene build in new commercial short positions. We have already exceeded the open interest totals that we saw back in January of this year when gold was at $430 by some 3,000 contracts. Today's action analysis will have to wait until the release on Monday by the exchange to see if we had the funds lightening up some of their huge long positions or actually increasing and buying the dip. I am expecting a drop in the open interest but would not be all that surprised to see it remain relatively unchanged judging by the late day price come back that took gold $4.00 off the low.
People should also keep in mind that there still remains plenty of room for new longs, both funds and small specs, to enter this market. My thoughts are that a close above the $430 level will see both categories piling into the gold market. The little specs are actually now some 20,000 contracts short of their recent cumulative total back in late January. What do you think will happen with this category once gold closes above $430? They will be swarming like flies into gold. The funds on the other hand are still chasing yield in a yield starved environment and will not hesitate to pile on once the momentum indicators flash breakout and buy signals.
The shorter term gold charts sustained some damage due to today's action so we should not be surprised to see some further back and fill action as there is another gap on the pit session daily just above $414.70 that will probably be targeted. Whether or not it gets there depends a great deal on the geopolitical events leading into next week. Beneath that we have the uptrending support line which comes in near $412 or so for Monday and various support levels under that.
While today's jobs report was indeed a huge surprise, one month does not a trend make and we will have to watch successive monthly releases to see if those kinds of numbers can continue. A good portion of the jobs were in construction which can usually be expected as the winter weather recedes and projects begin to gear up. The service sector however contained the bulk of the new jobs and I will be interested in seeing a further break down of that category.
Dan Norcini
dnorcini@earthlink.netThe King Report
M. Ramsey King Securities, Inc.
Friday April 2, 2004 Issue 2889 "Independent View of the News" The BLS play an April Fools Day trick by saying Feb PPI increased 0.1% as industrial commodities soared? To believe BLS, one must believe that in February heating oil fell 7.7% (by BLS magic) even though heating oil and gasoline increased at double-digit rates in Feb Government inflation accounting has become so fraudulent that only desperate and want-to-be-fooled bulls believe the BLSs numbers.
The March ISM rose 3 points more than expected. However, the details of the report are troubling. The production index increased to 65.5 from 63.9 in February, but new orders (a third of the index) dropped to 65.7 from 66.4. Now heres the problem: prices paid soared to 86 from 81.5 and the index of supplier deliveries (how long it takes to get materials) jumped to 67.9 from 62.1. The shortage of industrial commodities and steel is hindering production. We and others have documented the growing global crisis in material prices and shortages. With US capacity utilization at 76%, material shortages and bottlenecks are the cause, not some fantasy economic strength that might be advocated by intractabulls.
Bloomberg:
Zitat"A gauge of U.S. manufacturing unexpectedly rose last month, close to a two-decade high, as production increased and more factories added workers than in any month since Ronald Reagan was president, an industry report showed."
This is egregiously false. ISM is an opinion poll. It does not quantify employment and as we reported a month ago, neutral responses are counted as .5 positive. This is like saying the OTC market is at a record high because sentiment indicators or opinion polls show record bullishness.
http://quote.bloomberg.com/app…d=azL1XaA1Kstg&refer=home
Stephen Stanley, chief economist at RBS Greenwich Capital, on the ISM: "The breadth of the expansion as well as its speed is breathtaking. No need for fancy over-thinking. Plain and simple, this report tells us that the manufacturing sector is smoking." Wonder what Stephen is smoking. Dont inhale it, Stephen.
Jobless claims were 2k worse than expected; last week was revised +6k, the umpteenth upward revision in a row. There is no evidence in jobless or PMI surveys to support a big increase in employment. However one cannot underestimate the temerity of government economic statisticians to manufacture fiction.
We are 2.5 years after the trough. Were at the late point of the cycle when inflation flairs and employment falls as companies vigorously try to offset rising costs. However, many economists and gurus are forecasting or looking for early cycle phenomena. Hope and hype spring eternal.
-END-
Derivatives check:
Bill;
Short term (3month eurodollar) interest rates have backed up (increased) 36 basis points so far this morning - 10:00am. Five year rates are up approx. 25 basis points. On my planet this is referred to as a sharp adverse movement in interest rates. This is the very thing that regulators have warned us poses systemic risk to the financial system - interest rate sensitivity at both Fannie Mae and Freddie Mac. Ever wonder how much interest rate sensitivity there is in a 37 trillion derivatives book? Phone JP Morgan and ask.
best
RobGold supply on the wane:
JOHANNESBURG, April 2 (Reuters) - South African miner Harmony Gold said on Friday it might close some of its mine shafts after a weak local gold price due to a strong rand made some of its operations unprofitable.
Zitat"We have seen our cash operating profit levels decrease substantially," Chief Executive Bernard Swanepoel said in a statement. "Some of our older marginal shafts...are nearing the end of their economic life and may unfortunately be closed," it said. Harmony Gold Mining Company Ltd is the world's sixth biggest gold producer.
-END-
The cabal’s cheerleader is at it again:
Hi Bill,
The Gold Neutron bomb must be close to detonation. CNBC World had Andy Smith on a 4:20am EST today. Smith sees the Gold price under $400 by year end, doesn't think there's much upside potential left in the market and feels the Gold shares are at their highs. I didn't know who I was watching until after he gave his bearish pronouncements on the market. The Cabal must be desperate to hold the Gold price under $430 by rolling out this clown. The only positive comment he gave was that the market could go up to $450 in a day or two based on jobs report or a geo political event.
Regards,
John CAndy Smith popping off like this publicly is good news for us. About a month ago he mocked silver and those in the silver bull camp. The price has rallied 33% since then. Thanks Andy. With these kinds of calls you will be joining Robert Prechter and Mike Norman (TheStreet.com and Fox guest commentator) as the ones who got the gold and silver markets the most wrong.
The gold shares held up very well. Then again, they should have, having never followed gold up in the first place. The XAU was down 1.05 to 104.30 and the HUI lost 1.59 to 236.50.
While gold could do anything over the next few days, especially from a technical point of view, it seems to me the “structural market change” in gold will continue. More and more investors around the world want “in.” As silver goes bonkers, its price action will entice that many more gold buyers to take a bullion plunge, making the cabal’s task of holding gold down a tough one.
The silver shares perked up on Friday, as well they should have. The gold shares ought to anticipate the coming gold boom and begin to firm up sometime this coming week. First stop for the HUI is to take out 240 and then head for the old highs above 258.
GATA BE IN IT TO WIN IT!
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[Blockierte Grafik: http://www.goldseek.com/news/LemetropoleCafe/lmpc.jpg]
The John Brimelow Report
Enter India
Friday, April 02, 2004
Indian ex-duty premiums: AM: $4.24, PM $3.41, with world gold at $425.75 and $426.50. Slightly below legal import point. The Reserve Bank re-entered the FX market forcefully today, calling a halt to the rupees unusual appreciation. But the gains of the past few days have materially strengthened Indias grasp in the world gold market: Indians were no doubt strong buyers on the excursions below $420 later today. This would mean a new $US high point for their entry this year.
India appears to be rising on Wall Streets radar screens.
TOCOM greeted yesterdays exciting gold action with a yawn. Of course the PGM contracts, and silver have been even more exciting. The prospect of a strong yen is not inviting to leveraged yen futures players either. Volume dropped 68% to a nugatory level, equal to only 9,213 Comex lots: open interest still managed to drop the equivalent of 477 Comex lots. The active contract was up 7 yen, but world gold slipped 45c from the NY close. (NY yesterday traded 58,243 contracts, with open interest rising a notable 5,237 lots.)
Yesterdays brief intra-day excursion to multi-year highs has of course been upstaged now by todays brutal sell off. The consistent factor has been heavy volume. Standard London said of yesterday:
Zitat"the day wasthrilling for gold dealers as good volumes were flowing through the market the entire day. Gold opened in TOCOM at 426.60 bid and as in the prior sessions, physical selling commandeered the market lowerAfter the London market opened, strong opposing forces tried to dictate the direction of gold should take before the ECB announcement "After COMEX opened and gold continued surging fiercely higher and activity came to a crescendo at 431.25 bid, the days high. With good selling from profit takersgold came crashing back lower to the days low of 425."
ScotiaMocatta concurred:
Zitat"The metal traded to a high of 431.00/431.50 but stopped there as New York dealer selling weighed on the market. Gold soon slipped back below 430.00 and remained under pressure as further dealer selling emerged. It appeared that the dealer selling forced locals to give up on their long positions causing a sell off to the days low of 424.70/425.20. The metal then recovered over the afternoon on further fund buying, trading 427.30/427.80 at the close."
Yesterdays dramatic action, then, was in no way a gap up into no selling, as appears sometimes to have been the case with silver lately.
"Dealer selling", of course, has to mean a different thing than in the 90s, when a number of gold mines could choose to start selling (in a notional sense) swathes of production several years in the future into some spot market strength. With that kind of selling supposedly extinct (even reversed), such that the flexibility of the mines has been greatly reduced, a source for opportunistic selling has to be found elsewhere.
JB
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http://www.lemetropolecafe.com
April 2 - Gold $422.40 down $6.20 - Silver $8.12 up 1 cent
Silver Refuses To Break/Gold Shares Hold Their Ground
ZitatIf you can force your heart and nerve and sinew to serve your turn long after they are gone, and so hold on when there is nothing in you except the will which says to them: 'Hold on!'... Rudyard Kipling ( from the poem "If" )
GO GATA!!!
When I awoke very early yesterday morning, I made the mistake of peeking at the computer to see what the precious metals were doing. Gold was down $1.70, but silver was up 28 cents, similar to Thursday’s opening calls. Massive Swiss buying had taken silver all the way up to $8.46, up 35 cents over the Thursday Comex close. Naturally, my excitement over the silver action prevented me from going back to sleep. It was jumping and down with joy time, for about three hours that is. Then, we got the miraculous job report, just what the Bush re-election campaign needed to quiet his adversaries' criticisms over the lack of job creation in the US:
WASHINGTON (Reuters) - U.S. employment rose last month at the fastest pace in nearly four years as hiring increased across a wide array of industries, the government said on Friday in a report that stunned financial markets.
The report offers comfort to President Bush as the jobs market -- a hot political issue in the U.S. presidential campaign -- finally made a decisive break out of a long slump. Nevertheless, U.S. jobs lost since Bush took office still number a hefty 1.8 million.
Non-farm payrolls climbed 308,000 in March, helped a bit by the return of workers after a labor dispute at California grocery stores ended, the Labor Department said. This was the biggest gain since April 2000 and well above the 103,000 rise expected on Wall Street.
The unemployment rate ticked up to 5.7 percent from the two-year low of 5.6 percent seen in January and February.
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What blows me away is how anyone could believe such a perfectly timed, positive report after what these same people have dished out on Iraq and the PPI! If the jobs picture is picking up that much for American workers, great. Seems a real stretch to me.
The dollar rocketed on the news. By day’s end the dollar jumped to 88.85, up 1.32, and the euro lost around 2 full points.
Gold was all over the place. Reacting to silver's climb, it disregarded its early call and immediately rose $2 on the day before the jobs number was leaked. It then cratered to $417 before climbing back $3 near the close to finish the day only down $6 and change. Not too bad as it turned out in the end. Gold rose from $395 to $430 the past three weeks. Technically, it was overbought and due for a setback. In one day it came close to correcting nearly 50% of that move. The Gold Cartel will go all out in the days to come to enhance the correction, but they are liable to run into heavy buying. More and more of the investment world can see what is happening in the US as far as our credibility is concerned and they want “in” on the coming gold move.
The gold open interest leaped once again, up 5237 contracts to 307,277. This is a huge number and now the large fund specs may have been bagged by The Gold Cartel who is surely going to do all they can in the days ahead to create as much liquidation as possible.
Once again we see how crooked the gold market is by observing gold drop over $10, yet while rallying for 3 weeks the most The Gold Cartel would allow gold to rise was within their $6 rule decree. Gold’s low this morning was $417, down $10.60. Incredible how this can go on month after month, year after year, and no one says anything except the GATA ARMY.
While gold was hit hard in dollar terms, it held its own in foreign currencies, closing near its recent HIGHS. On a weekly basis gold closed in new high ground for the move in terms of the euro.
Silver was trashed from $8.46 to $7.91 for what? What does good economic news have to do with bombing of the price of silver? Of course, silver was hit hard in sympathy with the huge drop in the gold price. However, by day’s end, silver accounted for itself with aplomb:
*It strengthened technically as it filled its gap to the penny it left the day before at $7.91. The silver bears lost that price point to shoot for.
*It closed higher, surviving a potential key reversal to the downside, jumping 5 cents on the close to do so.
*Has the shorts talking to themselves. “What is it going to take to calm the silver price down?” they must be querying this weekend.
The silver open interest FELL 1127 contracts to 119,201. This is further proof that some of the big shorts have woken up to what is going on and want OUT before they capsize into oblivion.
Talk about invaluable input. MIDAS has relayed information from one of GATA’s top sources that a huge buyer of physical silver allowed its supplier until sometime in April to make good on a 20 million ounce order. It was supposed to have been delivered in March, but the supplier did not have the physical then. The transaction was to have taken place in Switzerland. So, here we are in April and the price of silver spikes as a result of enormous Swiss buying. I am not privy to any details on this buying. Yet, I will be very surprised if we don’t see more of it in the days and weeks to come.
It is important to keep in mind that this is just ONE major silver buyer. There are other funds out there lurking for silver and then you have the Chinese, who are all over it also. Recently MIDAS mentioned it looked like silver was going into its acceleration phase. It sure looks like that phase is here, or close at hand!
The silver close, ANOTHER new weekly high one, was nothing less than sensational. Look for some fireworks next week. Silver could go $9 bid in a heartbeat.
Now you know why the gold shares traded so mysteriously poorly the past few days and WHY the bullion dealers were willing to sell all the bullion the funds wanted to buy as gold approached $430. Surely The Gold Cartel knew a big jobs number was coming and what it would do to the gold price. New Café members, welcome to knowing that the New York and Washington establishment is nothing more than white-collar MAFIA, ready and willing to fleece you for your money at every opportunity they can.
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Die neusten GATA Beiträge sind zur Zeit leider noch nicht Verfügbar.
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[Blockierte Grafik: http://trinity.mips1.net/42256…/%24File/mining_small.gif]
[Blockierte Grafik: http://trinity.mips1.net/42256…ldFields_Q2_F2004_out.gif]
http://trinity.mips1.net/MGGol…6E69006A6641?OpenDocument
Cheaper IAMGOLD a target itself?
By: Tim Wood
Posted: 2004/04/01 Do 14:22 EST | © Mineweb 1997-2004
NEW YORK (Mineweb.com) -- IAMGOLD [IAG] may itself become a takeover target as the combination of arbitrageurs and disgruntled investors takes their toll on the stock price in the wake of the $3 billion offer for the fully diluted stake in Wheaton River [WHT].
It is very unlikely that another bidder will try to trump IAMGOLD and pay more for Wheaton River given the break fees baked into the deal, but the West African focused non-operator may be coming into range for other predators at current prices.Having achieved its best closing price since 17 February, IAMGOLD has been flayed in the two subsequent trading sessions. It traded as low as $6.40 today before recovering 7 cents; a loss of 10% since the deal was announced. That has slashed nearly $300 million off the offer and the bid spread widened today on suggestions IAMGOLD shareholders will not approve the deal.
As Norilsk Nickel’s cheeky raid on Stillwater [SWC] proved shareholder activism is talked about, not actioned. It is inconceivable that IAMGOLD will not carry the 50% approval it requires.
Speculation about a bid for IAMGOLD rests partially on its lower price, but mostly because of the absence of BMO Nesbitt Burns from the transaction. That has been widely noticed and interpreted as BMON-B being a conflicted party since the group is seldom absent from anything with a price and commission attached to it. The speculation extends to what caused the conflict and the leading candidate is a company that has become closer to BMON-B in recent months – Randgold Resources [GOLD].
Having been spurned by IAMGOLD for a merger over a leadership position clash, the thinking is that Randgold’s Dr Mark Bristow has the motivation and means to make a play for an erstwhile partner. However, Randgold’s stock has itself fallen on hard times and justifying the sort of premium required to make IAMGOLD shareholders sell seems impossible.
Let it be noted though that Randgold rocketed higher today as investors digested news of declining Kebble family involvement and increasing resources at its Loulo mine. There are also rising expectations for Randgold to reveal much more payable ore at Loulo once it begins systematic drilling below laterite cover.
At the same time, Randgold was able to attract buyers when it was bidding for Ashanti, which was a much larger and riskier deal than IAMGOLD would be.
A Toronto sell-side analyst says that Randgold would have to offer a 20-25% premium over IAMGOLD’s price prior to announcing the Wheaton deal. That would require a ratio of exchange of 42 Randgold’s for every 100 IAMGOLD’s for an offer price of just under $9 per share.
Would Randgold do it? We couldn’t reach management for an answer, so all we could do was cast around for third party opinions. The result was a resounding no.
It was pointed out that AngloGold [AU] and Gold Fields [GFI] could have bought IAMGOLD at a much cheaper price a long time ago. They never did so and that is seen as one of the most telling factors. In that vein, IAMGOLD also has to help fund the expansion at Tarkwa plus the looming Sadiola deep sulphides project. Add those cash demands to the fact that IAMGOLD interests are minority ones, and analysts and professional investors are inclined to disbelieve that Randgold or anyone else would bid at this point. IAMGOLD is seen fairly well insulated.
All signs point to the deal going through so are IAMGOLD investors getting a bad deal? As long as metal prices hold, no. IAMGOLD has bought cash flow rather than ounces and even then the premium paid for Wheaton’s reserve ounces was only slightly above IAMGOLD’s own valuation per ounce when broken down into its component parts.
If you’re bullish on gold and buy the copper story, the only reason to be hesitant about the deal is execution risk going forward. The combined companies have a very lean structure for an operating entity which has to be addressed internally through hiring or externally through a takeover.
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Press Release Source: Freeport-McMoRan Copper & Gold Inc.
Freeport-McMoRan Copper & Gold Inc. Declares Quarterly Cash Dividend on Common and Preferred Stocks
Thursday April 1, 3:12 pm ET
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http://www.sharecast.com/cgi-b…story.cgi?story_id=236468
Cluff Mining surges nearly 60% (zur Zeit sind es noch plus 48.2%)
Fri 02 Apr 2004
LONDON (SHARECAST) - Shares in Cluff Mining climbed almost 60% as it confirmed its drilling programme at Sheba's Ridge in South Africa indicated a “significant resource”.The results suggested Sheba's Ridge could sustain a mine producing 35-40m pounds of nickel and more than 200,000 ounces of platinum and associated metals annually, the company said.
Zitat"A project of this scale has the potential to transform the company, although I should caution that we are at an early stage in the evaluation of this deposit," chairman Algy Cluff added.
He added that further evaluation drilling is needed, which won't be completed until last 2005.
For the year ending 31 December, pre-tax losses narrowed to $7.11m from $9.62m after a restructuring that included the $5m sale of its gold assets to Cluff Gold.
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[Blockierte Grafik: http://www.optionsscheinecheck.de/images/aktiencheck_1.gif]
http://www.optionsscheinecheck…etype=5&AnalysenID=404341
02.04.2004
Gold-Call kaufenFocus Money
Das Anlegermagazin "Focus Money" empfiehlt derzeit dem "bullish" eingestellten Investor einen Call (ISIN CH0017680692/ WKN A0CSEF) von UBS auf Gold.
Die Welt bleibe ein unsicherer Ort. Doch nicht nur die Terroranschläge würden die Investoren auf Gold setzen lassen. Die expansive Geldpolitik vieler Notenbanken könnte nach Meinung von Analysten längerfristig zu Wertverlusten bei den Papierwährungen wie Euro oder US-Dollar führen.
Hauptprofiteur wäre dann Gold. Positiv stimme auch, dass sich 15 Notenbanken auf ein Nachfolgeabkommen zur Beschränkung ihrer Goldreserven geeinigt hätten. Mit einem Gold-Call würden Anleger den Gewinn hebeln.
Hinsichtlich der Bewertungskennziffern hält das Anlegermagazin "Focus Money" den Call-Optionsschein von UBS für empfehlenswert. Der Stoppkurs sollte bei 3,80 Euro platziert werden.
WKN A0CSEF
OS-Typ Amerikanischer Call
Emittent UBS
Underlying Gold
Basispreis 380,00 US-Dollar
Kurs Underlying 426,38 US-Dollar
Bezugsverhältnis 10/1
Laufzeit 11.09.2006
Aufgeld in % 6,99
Omega 4,31
Preis OS 6,05 Euro -
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http://www.tradingroom.com.au/…04/04/02/FFXSDJZYJSD.html
Gallery Gold raises funds to boost African projects
Source: PERTH, April 2 AAP
Published: Friday April 2 2004, 6:15 PMEmerging miner Gallery Gold Ltd has raised $13.7 million in a placement to help fund work at its Mupane gold project in southern Africa.
The Perth company placed 54.7 million shares at 25 cents each to raise the money and will also issue up to 24 million shares at 25 cents to shareholders under a share purchase plan to raise up to $6 million.
Gallery Gold said it would use the money to underpin the ongoing development of its Mupane gold operation on the Shashe lease in Botswana.
It will also pay for more exploration around the mine.
The company has been drilling at the Golden Eagle and Map Nora deposits near Mupane in a bid to find sufficient gold to support satellite mining - thus extending the operation's life.
Mupane, near Francistown, is expected to produce over 100,000 ounces of gold a year, over a six year mine life, with first gold pour due late in 2004.
The company, which recently merged with Spinifex Gold Ltd, also has other mineral interests in eastern and southern Africa.
Some of the funds will be used to pay for the completion of a pre-feasibility study on its Buckreef project in Tanzania and to accelerate exploration at other advanced projects in both Botswana and Tanzania.
The company's shares were steady at 27 cents today.
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Hier kommt schon die offizielle Begründung, oder das was man den Anlegern gerne weissmachen möchte!
Eine eigentlich einleuchtende Begründung, wenn man sie glaubt, ich habe jedoch damit eher sehr viel Mühe
Gruss
Thaiguru
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http://www.vwd.de/vwd/news.htm?id=22431063
Goldpreis fällt nach US-Arbeitsmarktdaten kräftig
London (vwd) - Der Goldpreis ist nach Bekanntgabe der überraschend positiven US-Arbeitsmarktdaten am Freitagnachmittag und des daraufhin gestiegenen Dollar stark gefallen. Aktuell notiert die Feinunze mit 420,10 USD. Am Donnerstagabend notierte sie noch bei 426 USD. Kurz vor der Veröffentlichung der Daten lag der Preis sogar bei über 428 USD.
vwd/DJ/2.4.2004/reh02.04.2004, 16:11
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Bin mal gespannt was heute Nacht die GATA dazu in Erfahrung bringen konnte!
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Ja bogbair, Der Dollar legt wirklich einen "magischen" Preis Anstieg vor!
Gold fällt wie ein Stein um 12.50 Dollar runter! [Höchst/Tief]
Trotzdem, verzagen gilt nicht.
So schnell wie Gold gefällt wird, kann Gold auch wieder steigen!
Es sieht so aus, wie wenn Gold heute keine Chance mehr kriegt.
Doch nach einigen Handels Tagen sind wir trotzem drüber über der 430.- Dollar Gold Marke stehen.
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Reuters
Harmony Gold says might lose 230,000 oz per yr
Friday April 2, 7:37 am ET
JOHANNESBURG, April 2 (Reuters) - South Africa's Harmony Gold (HARJ.J) would lose 230,000 ounces of production per year or six percent of its total if it went ahead and closed six unprofitable shafts, the group said on Friday.
The six mine shafts employ around 5,000 workers, Marketing Director Ferdi Dippenaar told Reuters.Harmony Gold Mining Company Ltd, the world's sixth biggest gold producer, said earlier it was considering closing some shafts due to a strong rand that has made several of the operations unprofitable.
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Wollte gerade unter Deinen zwei geposteten Links zu MacMin nachlesen, doch bei mir funktionieren diese beiden Links nicht.
Liegt das an meinen Sicherheitseinstellungen im Browser, oder
an den Links?Gruss
ThaiGuru
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CARTEL CAPITULATION WATCH
The DOW gained 16 to 10,373, while the DOG jumped 20 to 2015. The dollar fell .42 to 87.53 and has broken down technically, falling below the most important moving averages. The euro rose .59 to 123.39.
The United States is in deep trouble thanks to the present administration and the rest of the New York/Washington establishment. Our credibility is gone, going down the drain more and more as each week passes. As the facts about the Iraq War become known, it turns more and more people in this country and around the world against our government for lying about the reasons we went to war in the first place. These people in charge in Washington are a bunch of sickos, fabricating such reasons like "weapons of mass destruction," which did not exist, and then President Bush has the audacity to make a joke about them. Some joke! Nearly 600 Americans dead, thousands maimed for life. Meanwhile, our invasion has inflamed the Muslim/terrorist world, creating even more global instability.
The Iraq War is more of a macro issue. A micro one is how Washington/New York/present Administration are SPINNING the inflation issue. The delayed February PPI finally came out today. Is this an April Fool’s day joke:
April 1 (Bloomberg) -- U.S. producer prices rose 0.1 percent in February, restrained by declines in costs of drugs, light trucks and home heating oil, a government report showed.
The increase in prices paid to factories, farmers and other producers followed January's 0.6 percent rise, the Labor Department said in Washington. Excluding volatile food and energy prices, the so-called core rate also climbed 0.1 percent after rising 0.3 percent a month earlier. –END-Is there anyone in the real world who believes such nonsense? Prices soared in February and they have the audacity to come out with this kind of fabrication. This is no way to maintain any sort of credibility in Washington.
"But, there is no inflation," says the Bush Administration. Oh yeah? From a recent Richard Russell commentary:
Dear Mr. Russell,
I had to write this letter regarding the comments of Adrian Van Eck of last Friday. I am also extremely angry at our government for the massaging (I refer to it as a lie) of the "numbers." I own a wholesale bakery in Nassau County, Long Island New York. Mr. Van Eck is exactly correct in his idea's about the rampant inflation that is going on. Aside from the rise in local taxes, health care, and oil, I would like to tell you about the inflationary pricing that has occurred in my business during the last 10 weeks.
1. Eggs have gone from $18 case to $39.95. more than a 100 per cent increase.
2. Butter has gone from $56 a case to $92 a case.
3. Cream has gone from 2.10 a quart to $2.50 a quart. And i just got a call from my dairy provider who says that on April 1st the price will go up another 80 cents a quart.
4. Flour has gone up the least at about 5-7 percent.
5. All soy based products and toppings went up 15-20 per cent last week.
6. I just heard from my chocolate supplier who is only raising the minium order, but that went through the roof about 15 months ago. You can check the cocoa futures for that.
All of these numbers are documented and not pulled from the thin air.
What is our government looking at? What happened to the idea of government helping the people. I am tired of politics as usual. Keep on trucking Mr. Russell.
Golfdad
So much for another "donkey" story:
April 1 (Bloomberg) -- The European Central Bank left its benchmark lending rate at a six-decade low of 2 percent, awaiting more evidence about the strength of an economic recovery among the dozen nations sharing the euro.
ECB President Jean-Claude Trichet damped rate-cut speculation today, saying interest rates ``remain in line with the maintenance of price stability in the medium term'' and predicting that a ``modest'' economic recovery is on track.
–END-
GATA’s Mike Bolser:[b]
Hi Bill:
[b]The Federal Reserve added $8.75 Billion in temporary repurchase agreements today April 1rst 2004, an action that moved the repo pool down a bit to $33.83 Billion. The DOW tracks above 10,410 at the moment, being levitatedby the Fed's constant upward repo pressure.
A serious run for gold
Examine the Changes_Currency_Gold chart at my interventional analysis site:
http://www.pbase.com/gmbolser/interventional_analysis
The current spike up in gold is clearly the largest divergence from the major currencies since the O'Neill Period when the ESF had no gold selling tools available because the SECTREAS had been "fired" by the president. As such, gold is making a major move since the ESF tools are now operational.
Whether the Fed has capitulated is anyone's guess but the continuing saga of the LBMA's failure to report its February precious metals volume stands as a tall indicator that real trouble for the Fed is afoot.
MikeThere is no inflation in Spain either:
MADRID, April 1 (Reuters) - Spain's manufacturing sector expanded for a seventh consecutive month in March but manufacturers were hit by a sharp rise in input prices and a shortage of metals.
Spain's manufacturing purchasing managers' index (PMI) fell to 52.9 points in March from 53.2 points in February, NTC Research and the Spanish Purchasing Managers' Association said on Thursday.
It was the seventh month that the index has been above the 50 mark which indicates expansion, although Spanish industry grew more slowly in March than in February.
The data showed a "substantial increase" in production and new orders as Spanish manufacturers benefited from stronger global economic conditions, NTC said.
But manufacturers surveyed reported a surge in the prices they paid for raw materials and fuel. The "purchase prices" component of the index rose to 66.5 in March from 62.1 a month earlier.
-END-
Nor is there any in Argentina:
Argentina energy crisis spreads
Argentina has sharply reduced its gas exports in response to a domestic energy crisis, triggering serious shortages in neighbouring Chile.
Chile, which has few energy reserves of its own, faces a gas supply shortfall of 2.3 million cubic metres a day. Senior Chilean officials have tried to dispel growing fears of energy price rises and compulsory rationing. Economy minister Jorge Rodriguez said there were sufficient back-up supplies to avoid rationing. However, he added that while there are laws in place to protect consumers, energy prices were beyond the government's control.
The shortages stem from Argentina's decision on Wednesday to limit gas exports to 2003 levels for the next five months. –END-
And, of course, there is no inflation in the US:
May corn ($3.25 ¾ up 5 ½ cents)
http://futures.tradingcharts.com/chart/CN/54On the crummy action of the gold shares from a Café member:
Bill,
I'm as puzzled and annoyed as you by the recent gold share inaction, but I'd like to throw several ideas into the hopper.
First, most of what I hear/read is incredulity over gold's recent rise over $400. I think there are a lot of advisors who have missed the boat and won't admit it to their clients, at least so far. The clients and their money are still on the sidelines waiting for gold to tank.
Second, stocks are financial assets. If the Fed is running short of metal to sell, there's always plenty of paper money to fund short sales.
Third, and very importantly, I think a lot of propaganda by the shorts (ex.: there's lots of silver around, we'll be back to $4.50 when the specs get cold feet) is helping to keep people nervous and underinvested. How the heck are the shorts going to cover if everyone is piling in at the same time?
(A tangent to this is, since no one knows the details of all those trillions of derivatives, I would bet that many central bank interventions are designed to allow favored parties to beat tactical retreats before they get skinned alive.)
(Another aside. You sometimes mention that half the CBs gold is gone. That figure is a year or more old by now. I imagine that way more than that has been needed to continue to cap gold all this time. This is going to be like Afghanistan, where by the time we moved on the Taliban's northern lines, there was nothing left. When the Cartel collapses it will take nothing more than a little breeze to knock them over.)
Finally, it is worth remembering the old saying that the market has predicted 9 of the last 5 recessions. Stocks are not as good predictors of the future as many would have us believe.
I am guessing that a close over the January high ought to shake a bunch
of people up.
Peter RhalterGold friendly news from Sweden:
Sweden cuts rates to lowest level in a century
By Nicholas George in Stockholm
Published: April 1 2004 10:27 | financial timesThe Swedish Central bank cut its key interest rate by 50 basis points to 2 per cent on Thursday, its lowest level for a century, reflecting low inflation and rising unemployment in the Nordic region's largest economy........ In a statement the central bank said the recent decline in inflation had been "greater than anticipated," partly due to unexpectedly low import prices but also to a weaker labour market........ The central bank has been under intense pressure to cut rates from politicians and economist who have criticised its cautious approach to monetary policy and its failure to forecast the sharp fall in inflation. However Lars Grönstedt, chief executive of Handelsbanken, one of the country's largest banks, warned that rate cuts could fuel an unsustainable lending boom..........
–END-
Silver delivery problems:
Hi Bill,
I bought a silver future on the COMEX on the last notice day, Feb 25 I think it was, and advised my broker that day that I want to take delivery. Here it is FIVE weeks later and the silver is still not even on a truck. Bill, there are very serious silver delivery problems.
Ron Lutka
The gold share action remains atrocious. Both silver and gold closed at 15-year plus highs AGAIN and most of the gold shares just yawned. It is if they are saying, "OK, gold and silver, you keep going up, but we know it won’t last so we’ll wait for the correction before we rally significantly."
The XAU was up .41 to 105.35 and the HUI finished 2.09 higher at 238.09, well off its 240.81 high. There is a decent amount of technical resistance right above 240 for the HUI. Once it is broken on a closing basis, the gold shares should really take off and take out the old highs above 258.
The Gold Cartel is doing all it can to prevent gold from taking out $430. Who knows what kind of gold derivatives problems could develop when this happens. The cabal forces don’t want to find out. Too bad! They are going to. They have already lost control of silver. It is only a matter of time before they lose control of gold too. The jig is about up. Their crooked ways are going to bite them in the butt.
Tomorrow’s precious metals action will take its early cue from the highly anticipated jobs report. The Bush Administration is desperate for a good one, so it is hard to imagine the new jobs number not being at least what is expected. The sad part is, after today’s PPI joke, who could really believe a good jobs number anyway - except for the rah-rahs on Wall Street that is?
Silver is already headed for the moon. Gold soon will be too.
GATA BE IN IT TO WIN IT!
MIDAS
Tomorrow's MIDAS might be delayed as I am heading out after lunch for Rich and Eric Radez's natural resource conference in Chicago.
Appendix
New York Post
OOPS! LABOR DEPT. LOST 321,000 AMERICAN JOBS!
By JOHN CRUDELE
April 1, 2004 -- LET'S make some trouble.
Tomorrow morning the Labor Department will announce the number of new jobs created in March as well as the monthly unemployment rate. The experts - you will recognize them because for months they've been sitting in the corner with dunce caps on - are expecting 125,000 new positions to have appeared during the month and the unemployment rate to fall from 5.6 percent to 5.5 percent.
We all know how politically sensitive these figures are, especially in a presidential election year. And I don't have to tell you how much Wall Street obsesses over them.
Well, what if I told you that the Labor Department made 321,000 jobs disappear in January. If it hadn't been for this move, Washington would have reported monstrous growth of 433,000 jobs that month instead of a paltry 112,000.
Don't believe me?
Go to the Labor Department's website:
http://www.bls.gov/web/cesbd.htm
This is a section on the so-called "birth/death model adjustment," and it's buried deep in thousands of pages of other facts and figures.
You'll see a "-321" in the box under January 2004 - which means that 321,000 jobs were removed from the totals reported to the public.
This'll make the experts and Republicans crazy (or at least that's my aim.) But the officially reported job count was reduced because models in the Labor Department's computers say - but can't prove - that many companies went out of business in January and took jobs with them.
This is all very nutty stuff.
Last year, for instance, the government computers concluded that jobs mysteriously appeared in nine of the last 10 months of 2003 because someone in the hidden netherworld of economic forecasting thought - but also couldn't prove - that new companies were being born. And remember, this company creation was supposedly happening when the economy was so blah that the folks in D.C. decided we desperately needed a tax cut.
Normally the government comes up with its monthly jobs figures based on surveys of some 160,000 companies and government agencies, which may or may not tell the truth about hiring.
The guesstimates on companies being born or dying are based on an economic model called the "auto-regressive integrated moving average."
I don't know what the hell that means, but I did want to get some big words into this column. So let me give you a couple of bottom lines - if that isn't an oxymoron.
First, take all numbers coming out of the Labor Department with a pillar of salt.
Second, don't believe what the experts think. They have about as much chance of guessing the monthly labor number as Lotto queen Yolanda Vega has of figuring out which numbered balls are going to appear in the chute.
Third, trust only this.
After all the seasonal adjustments (which are now inexplicably done every month), the guesswork on the birth and death of companies, the millions of people who may have stopped looking for work, the offshoring of jobs and dozens of other statistical peculiarities - nobody really knows nothin' about the current job market.
My guess: Friday's number will continue to show mediocre job growth because the economy isn't growing as strongly as Washington would like and because there is no real incentive for companies to take on the added cost of new workers. Let's call the rest: Fun With Numbers.
*
The New York Times wrote last Friday that securities regulators who are trying to get back Dick Grasso's millions are looking into what took place at a New York Stock Exchange Board meeting last Aug. 7.
The issue of Grasso's compensation was taken up at that meeting, the Times says, despite the fact that it was put on the agenda late and some Grasso boardroom critics were not present. That's all nice - and fruitless.
Insiders tell me that what happened at that meeting did not break the bylaws of the exchange. And while regulators might be able to make a case against some NYSE directors, this route won't get them any closer to Grasso's loot.
As I've said in previous columns, the exchange, the SEC and the office of New York State Attorney General Eliot Spitzer need to look into whether Grasso had any role in the floor broker scandal of the late 1990s.
If they find Grasso, as chairman of the exchange, knew about trading abuses and didn't disclose them - or even covered them up - while negotiating his lucrative employment contracts, then the government can make a strong case for recovering the money.
*Please send e-mail to:
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The John Brimelow Report
Bears in trouble?
Thursday, April 01, 2004
Indian ex-duty premiums: AM $4.83 PM (N/A), with world gold at $424.60. A little below legal import point. Reuters did not carry PM data. The Bombay Stock Exchange soared 2.69% today: if this euphoria carries over into the FX market, gold bears are likely to have difficulty in forcing world bullion down.
There seems to be a little appetite in Japan, too. On volume equal to 28,736 Comex contracts, (down 29% from yesterday’s possibly FY-end-swollen level) the active contract rose 5 yen and open interest edged up the equivalent of 620 Comex contracts, although World gold was $1.20 lower than the NY close at the end of the TOCOM day. Also, the discount on Shanghai Gold Exchange prices has narrowed to under a dollar. (NY traded 62,784 lots yesterday: open interest climbed a steep 6,996 lots to 302,040.)
Gold in NY yesterday battled up, grimly. The estimated volume suggested that activity jumped 50% in the last half hour; UBS comments:
Zitat"Very good two way flows were seen between the $425 and $426 level in spot with speculators the main buyers and trade the sellers. Fifteen minutes before the close further speculative buying was seen and this continued into the session’s end, which saw gold close on the highs of the day."
The determination of both sides is well demonstrated by this addition of almost 700,000 oz of net buying to the Comex longs.
JB
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April 1 - Gold $427.60 up 60 cents - Silver $8.01 up 20 cents
Silver Roars Through $8, Gold Takes Out $430 Briefly
ZitatWinning has a joy and discrete purity to it that cannot be replaced by anything else. Winning is important to any man's or woman's
sense of satisfaction and well-being. Winning is not everything;
but it is something powerful, indeed beautiful, in itself, something
as necessary to the strong spirit as striving is necessary to the
healthy character. A. Bartlett Giamatti (1938-1989)
president of Yale University and later baseball commissionerGo GATA!
Gold was due $1.70 lower this morning with silver due 15 cents higher. Did some Café member sent last night’s MIDAS silver commentary to precious metals dealers and the silver shorts?
Gold took off right off the bat, quickly taking out $430 and touched off some stops. It exploded up to $433 on extremely light volume. Very little was traded between $430 and $433. The bullion dealers, en masse and led by Morgan Stanley, then began selling in unison, quickly taking gold down $2 on the day. Can’t allow too much gold excitement. However, the funds came storming back in on the break to take gold back up twice to $430, basis the active June contract. Gold was unable to further penetrate this key level today.
Once above $8, silver began moving sharply higher as we came into the silver opening. BOOM! Before you could blink, silver was up 29 cents. It sold off in sync with the bullion dealer drubbing of gold. Yet, the most the silver shorts could do was bring silver back to $8, up 9 cents on the day. Silver then drifted back up and stayed around 20 cents higher for the rest of the session, barely trading. This is, once again, a technical positive, as silver shows no signs of any kind of a short-term top. We must have a good deal of volatility before this occurs.
The silver shorts refuse to panic. They just watch silver go up almost every day and cannot believe their eyes. This will prove to be an egregious mistake. Their EYES are working, it is the BRAINS which are not.
One sign the silver shorts haven’t blinked yet is the spreads are not narrowing at all. The May/Dec closed at 2.5 cents, May premium. When silver spiked early, the spreads narrowed quickly and then blew out again when silver retreated. When May goes over Dec, it will be a sign the big shorts know the game is up, they have been had, and some know they had better cover their May positions before they are destroyed.
Veteran Café members might remember the fellow Café member who bought 2 million shares of ECU silver between ½ cent and 2 cents Cdn and then doubled up at 32 cents. Who knows where ECU will open up in the next couple of days, however, since silver has risen $1.20 since it was halted, it should be well north of 59 cents Cdn, which was the closing price the day of the halt.
The man is a superb technician. He has done a great deal of work on the gold market too and today I was informed his work shows today’s gold market to be remarkably similar to right before the big price spike in 1979. It is his opinion the likelihood of us not having a giant move higher in the months to come, similar to the one in 79, is very small.
Sounds good to me. This guy has top-notch credibility in my book.
The gold open interest rose 6,999 contracts to 302,040. That is a new high and should stand as one of the highest ever. Funds all over the world are taking on The Gold Cartel and other bullion dealers. It is just possible we are close to getting our long awaited Commercial Signal Failure (this is when the commercial shorts get blown out of the water by the specs).
That Commercial Signal Failure is even closer to becoming a reality in silver. Last evening, through one of our Café sources, we learned for the first time the silver bullion dealers are scrambling and slowly waking up to the fact they may have a BIG problem. Those who don’t admit a beating and run for hills SOON are going to be sucking seaweed in the weeks and months to come, as the price of silver soars!
The silver open interest rose 1181 contracts to 120,328. This is a modest rise for such a substantial moved up yesterday. Good news. Even with silver’s enormous move these past few months, it has attracted very little bullish commentary from the pundits/analysts who should know better. Actually, to-date, most of the silver market commentary has been BEARISH! Pitiful!
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Thursday, April 01, 2004, 11:25:00 AM EST
Gold Market Summary
Author: Jim Sinclair
There is a high probability that what we are experiencing this morning is a very temporary blowout in the gold price from its march to the upside.
Shorts are gunning for $423 on the close. Any close under $428 will encourage the short sellers. The long funds - or about 45,000 new long contracts purchased at an apparent average of $413.50 - have likely not participated in this morning's selling and will in all probability have mental stops at $423.All this adds up to one hell of a bear trap being set up next week. The only thing I believe can prevent a temporary and healthy decline here is a significant geopolitical event. No sane person would wish for that.
This temporary downturn in gold will be short but could be a tad ugly. Insurance investors, investors, and modestly aggressive investors simply drink cold water and take a week off. Traders should easily have seen this AM's spike to be a blow off in the foolish news that the European Central Bank did not lower rates. Did you expect they would? If so, you have been watching too much financial TV.
Have your rulers at the ready because a simple straight edge and measure of the angle of ascent was all that was necessary to profit handsomely from the run from below $390. You are going to have another great opportunity in a week or so. All you have to do is borrow a child's ruler and work 5 minutes a day to grab one hell of a lot of money.
