Comatose until Elmer
G'day. Can you believe that the building's elevators were locked when I got to the offices yesterday? It's an excuse I certainly hadn't used before. Naturally, upon rapid assessment of the situation, I walked back up the hill and assumed the position on the lounge, watching a replay of the NFL game. The ad breaks allowed some flicking across to Bloomy TV and, from all accounts and from the market action that I observed, I got more out of watching the footy than I would've sitting at the screens. Law and Order re-runs at 3am are very entertaining .... Angie Harmon ..... What a good sort!
Gold sat quietly and obediently at $404-5 for the past 96 hours and silver also remained quiet as the market focused on the FOMC rate decision, expected in another few hours. At the Comex opening, gold was lifted aggressively and traded at $410 spot briefly. Stop loss buying as gold traded through $407 spot was cited as the main cause with some fund buying noted as well. Oil's little jig back through $47 wouldn't have hurt gold either. Resistance in gold is seen at $410-12 and support at $402-4. Many moving averages are converging on $405 level at present.
Silver made it to $6.33 and I would have thought we'd be pushing into resistance at $6.50ish given the dollar and gold. Furthermore, Copper and Ally saw impressive gains and should have been more supportive of higher silver in my opinion. I am hearing some producer hedging in silver with the price north of $6.25. Silver has certainly disappointed me a little this past week but am still favourably disposed to the white lightning. Silver 200 DMA is around the $6.45 level at present and the daily indicator is turning up for the first time in September.
I note that India is still importing gold and the Rupee is relatively stable around the $45.83 level to the dollar. Any further Rupee strength should be supportive of further physical gold demand no matter the U.S. Dollar price of gold. Kitco is still selling physical at Spot plus $20 per ounce.
The Amex Gold Bugs Index (HUI) had been hit some with the downgrade of Newmont Mining (NEM:NYSE) although I note we are today pushing into resistance at the 212 level. A relatively robust performance considering.
Elmer delivers the FOMC rate decision in a few hours and all things being equal we should be comatose till then. This should be a huge NON EVENT for the market but ....
I note the Jets are now 2-0 in the NFL ..... something's not right in the world.
Enjoy the rest of your day and expect the unexpected.
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