Nyet! Nyet! No More! No! Not tonight! This son of bitch, all night he, 'Check. Check. Check.'
Teddy KGB, Rounders
Gold and silver largely marked time in place today, after the regular and rigorous pounding that they took for the last fifteen days or so, depending on how you wish to count the start of it.
The dollar seems very toppy and overbought at this point, and I have included its chart below as well.
It is a fallacy to say that the metals are declining because the dollar is moving higher. Sometimes the metals and the dollar move inversely and sometimes they move together. In this case they are clearly moving in opposite directions.
There were no deliveries to standing contracts in The Bucket Shop yesterday. And the action in the metals warehouses was more of the usual 'weak leak' that seems to be the order of the day, at least this month.
Or not. When the dealer and the house are dealing from the bottom it is hard to predict what will happen next.
But at some point they will start to more visibly run out of chips, and will be called. And then we will see what is thrown down on the table.
Until then we are waiting for a short term buying signal, and holding all the long term positions.
Patience and caution are our friends. And time, given the steady flow of bullion from West to East.
And the propensity of these high-flying propeller heads to overplay their hands, and eventually come falling back to earth.
China calling. I think it's for you.
And check.
Have a pleasant evening.
