Hourly Action In Gold From Trader Dan
Posted: May 03 2010 By: Dan Norcini Post Edited: May 3, 2010 at 2:53 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
Further strength in the Dollar accompanied by further resiliency in gold translated into another new all time high for gold priced in both Euro and British Pound terms although there was no reported Fix today. Look for gold priced in Yen terms to also be very strong.
That showing gave US gold bulls enough ammunition to push prices higher as gnawing uneasiness surrounding Greece, Spain and Portugal is drawing money into gold as a safe haven currency.
The fly in the ointment was the poor showing by the mining shares as hedge funds appeared to be back in the ratio trade business today. I am not sure why that strategy was adopted because the broader equity markets were strong. You’d have to ask their computers because hedge fund managers have no ability to think seeing that they are slaves to their computerized black boxes. Agent Smith from the Matrix could not have asked for more compliant subjects. Either way, it tends to take some of the bullish enthusiasm off the gold market when this sort of thing occurs as can be witnessed by gold’s drifting lower off the early session highs.
A point of interest – crude oil made a yearly high in price today and natural gas was higher as well. Energy prices will need to be monitored for further gains as that will feed into gold. Natural gas has been the laggard due to supply issues but if it can find an elusive bottom, those concerned about inflation will take note as higher gasoline prices at the pump are already garnering some comments from economic watchers. Remember, rising energy costs impact just about every segment of the society regardless of the deceivers at the federal level who concoct their CPI using fallacious inputs and then love to exclude food and energy costs from the “core”.
Bonds were lower today although considering the strength in stocks, are holding very well. Holding the low from Friday will be the key to whether or not they can continue higher and press towards 119 ^20.
One last thing – as a hobbyist beekeeper from some 35 years, I can tell you that the issue with CCD (Colony Collapse Disorder) is quite serious. The average person has no idea how deeply reliant agricultural food production is dependent on pollination by our little friends.
DAN'S CHART:
http://jsmineset.com/wp-content/uploads/2010/05/May0310Gold.pdf
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