The metals popped higher today as the Non-Farm Payrolls came in light, and visions of QE taper receded further into next year.
There was intraday commentary Tremors and Warnings in the Gold Market that is worth reading. While I was glad to see the wiseguys lighten up on the price capping in the metals, there appears to be a more dangerous set of market conditions that they might realize. Some of the 'old hands' see it, but the fresh crop of the masters of the universe seem to be quite taken with their powers over paper.
It is a quaint notion, but the cure for tightness in supply is higher price. But given enough bad behaviour, and the normal market clearing mechanisms can fail to respond in the expected time intervals.
Nature, ain't it a bitch.
Who can say what snowflake will provide the little push that starts the avalanche. Better to see the avalanche conditions developing and do something to relieve them.
Have a pleasant evening.
Fly the Skies of Air Morgan: Never fear, the London Whale is here...
