Gold And Silver had sharp reversals today at 11AM est. 11AM est is always a pivotal hour in the metals markets as this is when the London LME closes for the day. Movements in the markets are often "surprising" after 11AM. Today's "surprise" may have been the result of the hammer of more ECB gold selling being lifted as the market in London closed. I'm only speculating, but the idea seems plausible. We've often seen prices tank after 11AM as well, as dem Rat Bastids at the Comex in NY to take advantage of the thin market after the LME closes in London. Oh, the games these Vermin play...
A reverse head and shoulders bottom has formed on the one hour chart of silver...a close above 13.55 could be just the technical catalyst we need to attempt another assualt on dem rat bastids wall of resistance at 14.04.
More often than not lately, reversal days like we had today are followed by several up days in the market...with little to put wind in the US Dollars sails and hold the metals in check it would not surprise me to see rising prices into the end of the week.
Tomorrow the FOMC will offer to us their decision on interest rates. It is expected that they will remain the same and all ears will be open to the FOMC's post meeting statement as it pertains to the "possibility" of future rate cuts or increases. Crude oil inventories will also be released tomorrow...OIL was back above $62 today, a close above $67 remains our target.
Little talked about "event" tomorrow: ...three subcommittees in the U.S. House of Representatives announced plans for a joint hearing on May 9 to examine foreign currency manipulation. The panels said they would focus on China and Japan, although they did not announce a witness list. http://today.reuters.com:80/news/articleinvesting.aspx?type=bondsNews&storyID=2007-05-02T225435Z_01_N02430362_RTRIDST_0_USA-CHINA-PAULSON-UPDATE-3.XML "News" coming out of these hearings could potentially have a big impact on the US Dollar.
Thursday the Bank of England will have an interest rate decision to share with the world...many believe that it will be an increase to 5.5%. That is higher than it is here at home. The ECB also will have a rate decision of their own to share with the world. No increase is expected, but a statement indicating a rise in June is. The ECB is determined to keep Euro Gold under 500, and are gradually losing their grip on that idea.
And we get a look at Retail Sales for April in the good 'ol USA on Friday. It's is doubtful anything we here or read about these data events for the balance of the week is likely to be US Dollar positive. Any buying being done in the US Dollar these days is limited to short covering. The US Dollar is doomed and it is only a matter of time when it will slip into the abyss below .8050 on the USDX...not IF it will.
Silver Resistance: 13.55 / 13.61 / 13.75
Silver Support: 13.44 / 13.39 / 13.30
_______________________________All prices SPOT
Gold Resistance: 686 / 691 / 694
Gold Support: 681 / 676 / 672
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