Drifting Down Dismal River
Not a fun place to be, even though they say it's beautiful this time of year.
Wow! What a bunch of lousy economic data we got this morning! Just terrible. I mean...I suppose it could be worse. GDP could print a negative number and really freak out LIESman but +1.25% is pretty terrible, especially when you consider the trend. Over 4% in Q42011, 2.0% in Q12012 and now this. It looks like "output" keeps getting cut by half with each, successive quarter. And you wonder why The Bernank couldn't wait to start QE∞?
Having both data points released near the Comex open provided a brief surge in the metals this morning. However, a concerted effort continues to keep both metals down for the week. Take a look at these charts:
So, we'll see what happens today. First Notice Day for the Oct12 gold contract is tomorrow so expect some volatility as current holders are "coerced" out of standing for delivery. Support still looks quite firm below 1750 so, as yesterday showed, I think it's doubtful we'd fall much through there. And Silver is very firm above 33.50 and is being purchased in size at that level in London. So, hang in there. Let's just get through this week and see where we go from here once the new quarter begins next week.
Have a great day!
p.s. There really is a Dismal River. It runs through the sandhills of Nebraska. Here are a few pics.