By The Associated Press
Palladium is falling as skyrocketing oil prices renew worries about inflation hurting sales of automobiles and other products in fast-growing countries.
China, India and other countries are already trying to rein in inflation rates that have been rising in part because of higher prices for commodities such as food and oil.
Traders are worried inflation may force consumers in those countries to conserve spending on automobiles and other products to pay for essential items. In turn, that would hurt demand for metals.
Platinum and palladium, which are used in catalytic converters in automobiles, settled lower Wednesday.
What a feeble explanation for the obvious. Unable to explain Palladium's sudden and unexpected leap from a very tall building, the Associated Press chimes in with the assertion that "renewed worries about inflation" have caused the Precious Metal to plunge.
Funny that. I thought the Precious Metals AND commodities in general were rising because of global worries over "inflation". Now they are falling because of them? Palladium fell today because somebody pushed it over the edge and NOT because of worries over inflation. Is it just a coincidence that Palladium gets ambushed in the midst of a falling Dollar AND an expiration of March options on futures? Not likely.
Silver and Gold gave the finger to the CRIMEX goons today as options on futures expired. It is very unusual to see Palladium [and Platinum] down on days when Silver and Gold are up, particularly if the US Dollar is getting beat down. This has bullion bank chicanery written all over it.
Silver was capped today at $33.75, Gold at $1415. The CRIMEX bullion banks have got to be pitching a fit this evening...their little victories over Platinum and Palladium small potatoes in the big picture.
Harvey Organ reports in his Daily Gold & Silver Report on the Open Interest numbers in Silver:
All eyes are on the front month of March. The total open interest declined from 50,848 to 39,528 but most of that was due to the margin limits. Most did not roll so they left. The remainder are strong and willling to take on Bylthe and company. The front month of February mysteriously saw its open interest rise from 114 to 118 despite 13 contracts served on Friday. Again someone was badly in need of silver in a hurry.
The estimated volume at the silver comex was nothing short of astounding. The estimated volume today was a superb 118,542. The confirmed volume on the comex on Friday was get of load of this ; 180,614.
In oz this represents 903 million oz of silver or one and 1/3 years of all mines annual production of silver.
Recall in our post yesterday, an Open Interest number to close out the month between 8,000 and 10,000 could potentially drain the CRIMEX of what little Silver they have in their vaults.
This has all the excitement of an Ali vs. Frazier hoedown. Keep those seat belts cinched up tight. A move through $33.75 in Silver could vault us up quickly to test Monday's high of $34.33. A breach of that high could put Silver on the fast track too and possibly through 35 before Friday's close. Gold has $1420 to contend with before it can look to take on December 2010's $1430 high.
Troubled banks rise to highest level in 18 years- AP
Higher oil prices would hamper global economy- AP ...ya think?
Oil prices hit $100 per barrel- AP ...Oops!