Gold and silver popped higher this morning as weak to bad economic news persuaded the markets that Zimbabwe Ben will not taper his wick anytime soon.
GDP for Q1 was revised downwards to 2.4% which was a miss.
Unemployment claims came in at a whopping 354,000 and continuing claims remained stubbornly high at 2,986,000.
And finally pending home sales came in very light at 0.3% versus 1.5% expected.
In Ben Bizarro world, bad news is good, because that means the Fed will keep oozing its sweet monetary sugar to the one percent.
And so the metals rallied, because the smart money knows that the jig is up, despite the histrionics that seek to persuade us otherwise.
Still the small specs are staying out. I was speaking to some traders today and they think silver is going lower to test 18 and won't step in until then.
When and if gold breaks the downtrend, they will become frantic and start bidding up gold and silver, after they cover their shorts. But let us rather wait for this.
When will it break the downtrend? A major failure to deliver would certainly do it. lol.
When it is perceived to have done so on the charts, we will know. I am not so sure even moving back into the long sideways consolidation is going to do it. We need a higher high and higher low on the intermediate chart quite badly to turn the sentiment around.
For now, even after this little bounce of the last two days, all is still gloom.
Singapore Gold Premiums Hit Record High on Tight Supply - Reuters