“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


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Thursday, November 21, 2013

Crude Rally is drawing some buying into Gold

Crude oil is currently experiencing a rather sharp rally as it is being led higher by the products, based on recent data suggesting the steep drop in prices is stimulating demand. Throw in a weaker Dollar, a weaker Yen ( no safe haven trade), a pop in grain and bean prices, and even a bump in cattle, and you have some buying hitting the general commodity sector. From what I can see right now, a goodly portion of this is short covering, with some bottom picking occurring across the sector. This is serving to lift gold from its worst levels of the session, along with silver.

Let's see where the dust settles by day's end to draw some conclusions.

5 comments:

  1. "To Big To Fail" banks now making new 52-wk. highs:

    BAC
    JPM
    MS

    No sign of an "Endgame" anywhere among the Fed-approved sectors.

    Zero.
    Nada.
    Zip.

    ReplyDelete
  2. Mark

    Totally correct,
    Quite the correction yesterday....it went on for the whole day !
    Had me worried for at least 30 seconds. LOL

    ReplyDelete
  3. Mark

    Along with the bad news that is propelling the XRT higher today I realized there has to be other bad news that is causing the DOW and general market to rally hard today.....I found it:

    Data on factory activity in November in the U.S. mid-Atlantic region indicated the economy continues to struggle to gain traction. The Philadelphia Federal Reserve Bank on Thursday reported its business activity index fell to its lowest level since May.

    Although this news in itself does not seem bad enough to cause upside movement in the markets perhaps there is other bad news that I have not found yet. LOL

    ReplyDelete
  4. Jim Sinclair says gold is in total absolute and utter complete capitulation now:
    Jim Sinclair now Executive Chairman of Singapore Gold Exchange

    I'd really like to know where the bottom will be. I guess it's anyone's best guess but I'm thinking it's an easy slide well below $1,000. People just cannot afford this kind of investment. It's certainly not for the average investor.

    Seems the general consensus around this site is somewhere in the vicinity of $800 or so.

    ReplyDelete
  5. News Unit

    I really don't think it will get that low. Martin Armstrong figures in the 1000 area but he said that once it gets close to the ultimate low everyone will be calling for 800.00 etc.
    If we are in capitulation it is a good thing…get it over with.

    ReplyDelete

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