Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Come Out and Play



Gold $395 Silver $5.82 Tuesday 22 June, 3am Sydney

G'day. A late start for me today, sorry. The Offspring concert here in Sydney kicked off at 7:20am New York time. A super gig but missed the first hour or so of the market. My ears are still ringing, but in a good sort of way. On arrival, I find gold basically where it closed on Friday. An Asian inspired dip down below $393 gave buyers a brief opportunity. The dollar was again weaker against most major currencies. New York again provides the fireworks for the day.

Silver got smoked in a couple of minutes. I was chatting to one of my dealers and he commented on how well bid silver was down near 5.90 and that it looked rather attractive. The next price made was 5.86 offered and we freefell to sub $5.80. The main seller was one of the floor brokers, I prefer not to name names sorry, and he certainly wasn't shy ditching whatever he had to do, for whoever. I guess we should see a fair bounce from here but would be a little concerned being long if we head back to $5.70. We have seen very good support at $5.60 and it would surprise if strong consumer/fabricator buying didn't emerge again at those sorts of levels.

Gold also got a little kick down to the $393 level. The currencies didn't move at all and I was scratching the old noggin for a minute. Then it dawned on me as I perused the "commodity" currencies. The Rand was up about 1.65% versus the dollar. A large part of the move occurred in the hour before gold copped a couple on the chin. I can only put 2 and 2 together and I expect we will hear that a South African has sold gold in Rand terms. Just educated guessing, mind you.

India is NOT importing gold at these levels. They don't like sharp moves up, more so when it coincides with a lower Rupee. This makes gold more expensive for locals and it is currently at a 7ish month low against the dollar. So that rules them out as buyers up here for a few days, until they get "re-comfortable" up here. Funds were solid buyers on Friday and would suggest dips will be attractive to those who missed the boat last week. Still good selling above and $396-8 is proving a tough nut to crack. Support at $392 then 388.

I suppose we should be watching the currencies for clues going forward, and I am heartened by the amount of chatter regarding inflation. "Unconcerned but vigilant", I thought I heard come from a Central banker in the ECB over the Bloomies terminal. Maybe I misheard.... And today would be the day for it.... Ears still ringing!

Short and sweet today, sorry....Gotta fly......

Enjoy the rest of your day....


position in gold and silver

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos