Thursday, October 7, 2010

Fasten Your Seatbealts

"Attention passengers. Please remain in your seats and keep you seatbealts fastened. We have encountered some turbulance, and air pockets along our flight path."

Trichet Says `Strong Dollar' Helps U.S., Opposes Exchange-Rate Volatility
John Fraher and Simone Meier
European Central Bank President Jean- Claude Trichet said he supports a “strong dollar” and opposes “disorderly” shifts in global exchange rates.

“I share the view of the U.S. authorities when they reiterate that a strong dollar is in the interest of the United States of America,” he said at a press conference in Frankfurt today.

Asked whether he’s concerned about the euro’s recent appreciation against the dollar, Trichet said: “I would only say that, more than ever, exchange rates should reflect economic fundamentals.”

“Excess volatility and disorderly moves have adverse implications for economic and financial stability.”

Talking down the Euro, talking up the Dollar. Coincidentally the Euro was at 1.40, Gold had cleared $1350, and Silver had cleared $23 as Trichet spoke.

Consumers cut credit card borrowing for 24th month- AP

Alasdair Macleod: The noose tightens for gold bears
Submitted by cpowell on Thu, 2010-10-07 02:34.

Dear Friend of GATA and Gold:
Economist and former banker Alasdair Macleod writes tonight that gold and silver are going parabolic as physical demand is causing shortages on the eve of currency devaluations. Macleod's commentary is headlined "The Noose Tightens for Gold Bears" and you can find it at his Internet site, Finance and Economics, here:

Eric King: Massive physical orders just below today's futures prices
Submitted by cpowell on Thu, 2010-10-07 18:44.

Dear Friend of GATA and Gold (and Silver):
Eric King of King World News reports from London precious metals market sources that there are "massive" orders for physical metal not far below today's futures contract prices. King's commentary is headlined "Massive Physical Gold Buyers Just Below These Levels" and you can find it at the King World News blog here:

J.S. Kim: Gold and silver -- This time it IS different
Submitted by cpowell on Thu, 2010-10-07 03:00.

Dear Friend of GATA and Gold:
J.S. Kim, proprietor of the SmartKnowledgeU investment advisory service, writes tonight that the current breakout in gold and silver prices will be different from past breakouts that were smashed down by Western central bankers, because they have much less metal to deploy against rising prices and because central banks and people elsewhere in the world have started to take delivery of the real stuff rather than accept paper claims to it. Kim's commentary is headlined "Gold and Silver: This Time It IS Different" and you can find it at his Internet site, The Underground Investor, here:

Smaller dips in gold being bought, Turk tells CNBC Europe
Submitted by cpowell on Wed, 2010-10-06 22:07.

Dear Friend of GATA and Gold (and Silver):
GoldMoney founder James Turk today was sure ready for his closeup, Mister DeMille. In addition to being interviewed by Reuters and King World News, Turk went on CNBC Europe from London for six minutes, remarking that smaller dips in gold are being bought and that gold has a long way to go to catch up with monetary debasement. You can watch the interview at the CNBC Internet site here:

CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.

Non-Farm Payroll numbers will be released Friday morning. According to the The Three Bears, the numbers could be hot, cold, or just right (consensus).

If the number is "just right" the Precious Metals markets should proceed with their march higher after resting here.

If the number comes in too "hot", [better than expected], it will turn the QE debate on it's head, put a bid under the Dollar, and push the Precious Metals down hard.

If the number comes in too "cold", [worse than expected], QE-2 becomes a certainty, and we are off to the races again.

Silver is testing support at 22.34 here now as I type this, and appears likely to break lower towards support at 22.15 and then 21.50.

Gold is testing support at 1326 as I type this, and also appears likely to break lower towards key support at 1315 and the 1296.

Air pockets in the markets are much more manageable when you expect them...

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