On this first trading day of September, you can sure tell that the monkeys have returned from vacation.
All in all, though, I suppose we should feel pretty good about the action this morning. On cue, at 0600 New York time, the metals were shoved backward. In a matter of minutes, gold dropped $6 and silver fell 30c, just to let everyone know that "vacation" was over. After a rally at the Comex open (an opening rally that seems to happen daily now...a very good sign), the metals were beaten back again, this time for $8 and 25c. If not for this lousy set of headlines ( https://www.zerohedge.com/news/manufacturing-ism-misses-third-month-contraction-territory-biggest-miss-construction-spending-o), we were likely on our way to a test of 1680 and 31.50 support.
The lousy ISM number caused another spike in price and gold briefly traded above $1700, with the Dec12 reaching $1701.60. Of course, that couldn't be allowed to stand, either, and gold has since been beaten back $8 again to $1693. That'll probably do it for today and I would expect a (somewhat) rangebound trade from here. This is a CoT survey Tuesday so anything can happen, of course, but if today was going to be a "Happy Tuesday", I suspect we would have seen more of an extended rally. Besides, The Gold Cartel has already added so many new shorts in the past two weeks alone, it seems that they could hardly give a damn right now about perception and report-painting. They are simply trying to contain price in the hopes that they'll once again be able to start a cascade into which they'll be able to cover a few shorts.
As always, the question is: Will/Can they start the waterfall? From here, it looks like gold will soon trade with a $17** handle and besting that level should give gold the strength to rally toward 1720. Once above 1720, gold looks to rally toward 1750 and 1800...SO...I think we have to expect a concerted effort to contain price below the 1720 level. Will they succeed in the short term? Maybe. Does it matter in the long term? No.
Silver, too, is digesting its massive Friday gains quite well. With the Comex being closed yesterday, we now have a gap on the chart which will most likely be filled at some point this week. However, if silver does manage to dip down toward 31.50 and below, it would represent a major opportunity to btfd again. The arrogant fools of The Evil Empire apparently have no idea of the shitstorm that is about to rain down upon them. Their days are numbered and, consequently, the days of silver manipulation and price-rigging are numbered, too. If they had any actual brains in their collective heads, they'd have simply considered the macro supply/demand equation and then used this summer's 100-day consolidation period to flatten their positions and exit the silver market for good. Instead, they continue on with business as usual. Halfwit, idiotic, lamebrain, nitwit, numbskull, blockheaded, nincompoop dunces.
Just a word or two regarding crude. Buy. Some.
https://www.bloomberg.com/news/2012-09-03/israeli-officials-see-gap-with-u-s-widening-over-iran.html & https://www.debka.com/article/22331/If-Israel-attacks-Iran-US-Mid-East-bases-will-pay-dear-–-Nasrallah
And The Pig appears to be at a bit of a crossroads, too. The level around 81 is acting as support but, absent a rally back toward 82, 81 will likely fail and it will fall toward 80.
And the grains are rallying today, too. The November bean is once again making new contract and all-time highs as it threathens $18/bushel. WOW!!! The December corn has yet to follow the beans and I'm not entirely certain why. Perhaps there is still the looming specter of an EPA rescission of the ethanol mandate? Maybe? I speak with Jim Comiskey every other Wednesday over at TTM. Maybe he can shed some light on this tomorrow.
Regardless, the DAG is poised to finally break through $15 and, if it does, the next target looks to be about $16.50. You should be watching this closely.
Here are a couple of interesting articles for you to read:
And that's all for now. As I close, I see that prices have remained relatively stable while I've been typing. That's always nice. Watch out for a Globex raid, though, as it is Tuesday and you should know by now that post-survey, Tuesday Globex raids are a Cartel specialty.
Have a great day!