How can the stock markets be up again today? It is astonishing, this feat of magic. I stand aside with only my mining shares and watch in amazement. The mining shares were up yesterday and today. They were up twice as much yesterday, when the market was down, than they were today when it was up. The Gold Bull has awakened! His Truthsayer firmly in the saddle, "Save yourselves! Buy Gold and Silver!"
Chinese Economy Grows by 11.9 Pct in 2Q
BEIJING (AP) -- China's booming economy accelerated in the second quarter to its fastest growth rate since 1995, driven by surging exports and investment, according to data reported Thursday.
The government said it will take new steps to control the boom.
My first thought was of the call for a "slowing demand for copper" after China reported it's first quarter GDP and their government said then they would take steps to "control the boom". Does anybody believe "new" steps will have any more effect? China is a runaway train. I doubt even the collapse of the US Economy will derail it. 11.9% spells an increase in commodities demand to me. Including Gold and Silver. AND OIL. The price of Oil in New York at this hour is $76.
I am so confused...what happened to the days where the losses in the stock market were blamed on rising Oil prices? The lambs are being led to slaughter. If you're not using this opportunity to exit all your American stock positions [except for your mining and resource stocks] and BUY as much Gold and Silver as you can afford you're doomed to go down with the herd. The day of financial reckoning is fast approaching.
Gold powered forward again today and banged head first into the major downtrend line I mentioned yesterday at 677. This is going to be interesting. Absent Friday's UK GDP report there is little economic data on tap for tomorrow. The numbers there are sure to roil the markets in some way, shape or form. The Euro is a bit tired up here. I would not be surprised if the week ended on a bit of a reaction in the metals. Of course, if Oil stays firm or continues higher, the metals may remain firm as we close out the week.
Above I have posted a weekly chart of spot Gold. Please click on it to enlarge. The "Big Picture" of Gold is quite telling. From the Bull's point of view here, he hasn't even spotted the red cape yet. The weekly chart of Gold gives you some idea of how much room the Bull "potentially" has to run from here should we crack $682. Be wary should we crack 682 and run next week. Next week is the last "full" week of July. We have to start thinking about the September contract rollover period as we enter August. It is very possible we may see tradeable highs in both Gold and Silver next week...though momentum may carry us into the first "full" week of August. Expect the wall to go up at $700 again. But don't be surprised if it's "paper thin".
Silver has overhead downtrend resistance around 13.35 on both the Daily and Weekly chart. Cracking 13.35 should bugger the shorts. You'll know they have their hands around their ankles if we get a .30+ pop as we move thru that area. Silver, like Gold, may begin to encounter turbulence as the September futures contract rollover period begins...have a plan of action should this come to pass.
The Dollar remains hanging from a cliff. Reminds me of Gandalf in The Fellowship Of The Ring when he's hanging from the cliff after defeating the "fire monster" and he gasps, "Run you fools!" The Dollar right now is so ugly you just want to stare at it. Beware the Dollar. Sell the rumoured demise of the Dollar, buy the news of it? Perhaps, we shall see...
Begin to watch the Gold price in Euros. You can see it here vs the price in Dollars:
http://www.kitco.com/gold_currency/charts.htm?EURO when the price of Gold in Euros cracks 500 Euros we may see $700 gold fall by the wayside.
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