The factor allowing them to push a bit harder against the bulls today (and unnerving the bulls somewhat) was increasing doubts concerning the European bank recapitalization plan.
Get used to this - One might as well pick a Flowering Daisy and pull the petals one at a time: "She loves me; she loves me not".
That is what "investing" has been degraded to nowadays.
Tomorrow brings the end of the trading week. If gold can go out over $1680 into the weekend, it will be "GAME ON" for the bulls. If not, we remain trapped in the range trade that has been the model for the last few weeks.
Silver was whacked for a 3% loss today as the Risk Aversion trades came back on the heels of the concern over the European bank plan deal. If the trading contingent feels differently about that plan tomorrow, it will just as likely take back all of today's losses and then some. Again, get your Daisy flower and start picking off the petals. Some business isn't it???
Either way, it too reinforces $32.50 as the resistance barrier that must be taken out and held to get something going to the upside in the Silver market.
The HUI is no help whatsoever to the metals and will not be until it clears the 50% Fibonacci retracement level near 560 and holds it. Until it does, it is checkmated and in a range trade.
I think there might be different reasons why silver received a 3% beat down suddenly.
ReplyDeleteThere's a rumor in the pit that Morgan is using own shares as a means to suppress silver. Now look at how closely coupled silver and JPMorgan stock price have been recently. I cannot help thinking it's more than just a rumor.
RUI, just how would that work? I don't understand how they(JPM)could use their own shares to suppress the price of silver. Could you please explain it.TIA
ReplyDeleteThanks Dan, your blog is appreciated, one of the first i check each day.
ReplyDelete@silverwood
ReplyDeleteI don't know the details either as it's a 'rumor'. I guess it's some kinda exotic derivative contracts in the OTC market where you promise to offer equities such as JPM shares as the backup payment if you are unable to deliver the silver. Just a guess. This coupling b/t JPM and silver is intriguingly tight.