Metals, Grains & Crude. Oh, My!
A very interesting day in all three. What will Wednesday bring?
First, the metals. As has been the case for all of 2012, The Bernank spoke today and down went gold and silver. After nearly reaching $1600 in early London trading, gold was pummeled well in advance of The Bernank and fell to as low as $1572 shortly after The Great Douchebag spoke. However, contrary to pattern from earlier this year, the metals subsequently reversed and traded higher, reaching $1592 just two hours later. Both metals have since been beaten back but the action today was encouraging, nonetheless. As you can plainly see on the charts below, both metals are rapidly moving toward a conclusion of their multi-month corrections. When they break...which will be soon...they will both break sharply and decisively higher.
Crude is getting very interesting as the situation in the MENA is becoming quite tense. Here's a story from the LATimes which confirms much of what Debka told us earlier today. Now above $88, the next objective is $90. IF it can get a toe-hold there and maintain it for a day or two, it will be set up for a run back toward $100. Not only could options players profit from this but holders of UCO would make a few bucks, too.
And this: http://www.zerohedge.com/contributed/2012-07-17/words-war And then watch this:
Lastly, the grains. Both corn and soyas are perched right below their respective, all-time highs. They may continue to struggle to generate momentum here in the short term but, in the long term, new highs almost look inevitable. I googled "Kansas City Weather" and I came up with the forecast below from a KC television station. 108F may be OK in the Sahara or the Outback but in the American Midwest, where corn and soybeans require consistent irrigation for growth and yield, a forecast of 100F+ heat with no rain is a real, potential disaster. IF you have a few dollars to fiddle (gamble) with and you don't yet own DAG, you should give it some serious thought.
Here are two bits of interesting reading for you. The first is from Pat Heller who comments on his FreedomFest experience: http://www.libertycoinservice.com/index.php?option=com_content&view=article&id=486:new-gold-commission-in-2013&catid=4:numismaster-articles&Itemid=9
And here is Rick Rule (who I also met at FreedomFest). Rick spoke with KWN regarding silver and other things: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/17_Rule_-_The_Physical_Silver_Market_Is_Getting_Dangerously_Tight.html
OK, that's all for now. MrsF keeps looking at my sideways so I must start heading back to my regularly-scheduled vacation. Have a great Wednesday!
Thank you for supporting TF Metals Report. Your voluntary subscriptions and donations help keep this site alive!