Thursday, May 10, 2007

So What's Going On?

What a load of crap. Bullshit if you prefer. I join you all in a string of expletives.

If today is not proof that the Gold Market is manipulated, then we will never have any proof.

If today is not proof that the US Government is the World's greatest criminal entity, then the world has no criminals.

The Blanchard Economic Research Note says it best:

This morning, post-Fed decision where there were no changes made to the statement of any significance, we've got a raft of data hitting the market that should all be precious metals positive, but silver and gold are taking it on the chin again this AM.

Please read their entire post for FIVE fundamental reasons why Precious Metals should have been popping on the upside today. Below I will offer some detail to these FIVE reasons...

Trade gap widens sharply in March
Bigger drag on first quarter growth than first thought

The nation's trade deficit widened by 10.4% in March to $63.9 billion, its highest level since last September, the Commerce Department said. It marked the largest increase in the deficit since September 2005.

As a result of the deterioration in the trade balance in March, the deficit will be more of a drag on first-quarter growth, already at a low 1.3% annual rate, economists said. The government had previously estimated that the trade sector subtracted half a percentage point from growth in gross domestic product for the January-through-March interval.
Economists said that after accounting for the March trade and inventory data, first-quarter growth would be cut to a slim 0.5%-to-0.8% range. This would be the weakest since the fourth quarter of 2002.

What a rosy picture...perhaps I should sell my Precious Metals and buy some US Dollars.

Chain U.S. retailers suffer worst April since same-store-sales records began 37

years ago

CHICAGO (MarketWatch) --U.S. retailers posted the weakest month of same-store sales on record Thursday as an early Easter holiday and chilly weather April dampened shoppers' desire for spring merchandise.

Of course it's the weather's always is. Trade in your Gold for US Dollars.

However, Thomson Financial's Jharonne Martis warned investors not to take the month's results to heart, urging them instead to combine March and April -- what some analysts call "Mapril" -- for a clearer picture of how consumers are spending.
"April's negative [results] are not necessarily an indication that consumers are not spending or that the economy is going down," she said. "They are simply the result of the shift in the Easter calendar."

Yeah right, "Mapril"...that's the ticket. Is that not the lamest excuse you have ever seen. This woman has redefined in "I am a dumb ass, and you are too if you belive this."

ECB and BoE meeting Review

From the FX price action point of view the USD got initial support from the two Central Bank decisions, but moves remain suspicious as the events were not that bullish for the Dollar, rather the opposite.

Oil prices rise on concerns about inventory report

WITH gasoline prices poised to break records at the pump in the United States, energy futures prices jumped yesterday as traders noticed a gas supply imbalance in the fine print of Wednesday's government inventory report.

Though the Energy Information Administration reported that gasoline stocks rose an average of 400,000 barrels last week, the first increase in 13 weeks, a closer inspection shows much of that increase is due to a 1.1-million barrel increase in inventories on the West Coast, said Kevin Saville, an analyst at Platts Oilgram News, according to The Associated Press.

"When you back out that 1.1 million build, you really get a draw (or reduction in inventories) of 700,000 barrels in the rest of the country," Saville said.

The West Coast is relatively isolated from the rest of the country, meaning an increase in gasoline inventories there doesn't do the rest of the US much good.

Oh, the fine print! Look..., the price of Oil IS going to keep going up through the entire summer. Wishful thinking and ignoring the fine print are not going to change that in the least.

Copper Falls Most in Three Months on Signs of Slowing Demand

May 10 (Bloomberg) -- Copper futures in New York tumbled the most in three months on signs that demand may slow in China, the world's largest user of the metal used in pipes and wires.

Stockpiles in Shanghai Futures Exchange warehouses have more than doubled this year to the highest since December 2005, indicating that China may buy less copper from overseas. Futures had climbed 32 percent in the two months before today as China's imports surpassed last year's pace for four straight months.

``We're expecting to see a deceleration in Chinese imports,'' said Mark Liinamaa, a metals analyst with Morgan Stanley in New York. ``It's likely that they got a little ahead of themselves in the first part of the year and imported more than their overall need.''

As reported by Bloomberg as told to by Morgan Stanley. Signs? It ceases to amaze my how "signs" move the markets. Especially when the "signs" are pointed out by the likes of Morgan Stanley...a mouthpiece for the PPT. If Bloomberg isn't "making up the news" their spreading the lies and disinformation provided by the PPT. The PPT would love for you to believe that China is overbought copper. China is buying all the copper they can get their hands on while it is cheap, and they're going to be a lot more of it in the month and years to come despite the "maybes" the like of Morgan Stanley want you to believe.

Resource Investor, VA - 13 hours ago

Yesterday, Peru's Energy and Mines Ministry reported that gold production in the country was down 14% in March at 15.1 million grams compared to the same ...

Resource Investor

Obviously things are bad and Precious Metals should be kicking sand in dem Rat Bastids faces. The cronies at the PPT who engage in rigging the markets 24/7 are at the height of desperation. The rate at which they are dumping gold onto the market to avoid the inevitable is astonishing. They are about to be overrun, and they know it.

Today was a loud noise. Try and ignore it. Listen to the folks at the Blanchard Economic Research Unit:

...keep an eye on long term trends like mine supply and bank sales, not daily action described as profit taking, book squaring and fund activity. Precious metals are a medium to long term trade, not a day trade. Keep your eye on the London close where the physical metals are sold. While certainly not true every day, 84% of the last 35 trading days have seen prices bounce back considerably once the London market shuts down. Additional supply from banks is keeping prices bottled up, but we strongly believe this is a temporary phenomenon and that this should be greeted as an opportunity to add to positions .

Silver Resistance: 13.10 / 13.15 / 13.30

Silver Support: 13.03 / 12.92 / 12.73

_________________________________All prices SPOT

Gold Resistance: 668 / 672 / 676

Gold Support: 666 / 664 / 660

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