Gold holding at initial support thus far
Gold has dropped into the first zone of support noted on the price chart near the $1720 level and has thus far held as dip buyers surfaced. That buying was fostered by a weaker Dollar which was lower in today's session but has not broken down decisively yet below the critical 79 level.
Surging crude oil and gasoline prices did help gold today as some traders are concerned that the rise in energy costs will eventually feed through and impact the price of other goods and services in the broader economy. Transportation costs can only be absorbed for so long.
Greece on, Greece off. Greece on, Greece off. That's pretty much the story to the action lately. I doubt the bulls let 1705 go, because then they all whine when they miss that $50 overnight pop (if it were to come) and they know it's going higher, but you never know. The cartel wants it lower, that's for sure, and they usually get what they want. On the other hand, they need to goose the DXY lower to break 1350 on the S&P, and the CCI has been in the shitter since Friday and is due for another run at 600.
ReplyDeleteI remain bullish, and believe the cartel wants it lower before the next LTRO (aka LMFAO) kicks in and they possibly lose control of the upside action (again).
In addition to the BOE's monthly 50B Pound QE, BOJ just announced more QE.
ReplyDeletehttp://www.bloomberg.com/news/2012-02-14/bank-of-japan-unexpectedly-adds-to-monetary-easing-after-economy-contracts.html
BOJ QE (now monthly?) - $128B
BOE QE (now monthly?) - $80B
China - constant stimulus and QE - in the trillions
U.S. - Constant stealth QE via swap line "loans" (that get rolled over)
E.U. - The grand prize winner - $2T Euros with another $1T on deck.
Upside pressure is building on PM's, and I'm expecting a nice breakout shortly. Soon as the CCI catches a bid, if not sooner. S&P stuck at 1350. Hot money is going to be looking for a new home soon if things don't get moving, and guess which asset class has underperformed, yet with wildly bullish fundamentals?