Gold Daily and Silver Weekly Charts - The New Normal

"Maybe more of what is causing this rate to be low are factors that won't be rapidly disappearing but are part of the 'new normal.'"

Janet Yellen, 15 June 2016

Probably the smartest thing that the public can do, in the US and the UK at the least, is something that changes the basis of this 'new normal' that the professional plutocrats find to be so comfortable for themselves, if not for their broad constituencies.

Gold took off higher today and cracked up above the 1300 level.

And it had run quite far in a short period of time, and those who trade the precious metals like paper currencies were seeing some nice opportunities for a quick whipsaw, and they took it.

So in a fairly short period of time gold was smacked back down about $30 intraday as the algos did their thing, and the thin specs started taking profits and then dumping positions.

And unless you are a daytrader this does not matter much at all. It was not unusual for gold to get rejected at the 1300 level This has been the story for quite some time, as well as the old support and resistance at 1280.

Brexit is next week, and the Fed is chomping at the bit to give their masters at least 25 bp this year before the elections draw too close.

Let's see how gold digests this pullback against its recent gains, which have been quite impressive.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Reverse Engines

Money is still hot and cheap, and plentiful in all the wrong hands.  So do not look for fundamentals to be driving asset prices in the short time, if they ever do.

It was no surprise that we saw a sharp reversal in equities today as the selling obviously exhausted itself on Brexit jitters, and there were too many specs leaning with leverage to the short side.

So we had a nice sharp intraday reversal.

Ok, now that the Fed is off the table for now, at least until July, attention is turning to Brexit, and to a lesser extent to the real economy, primarily as it says something about what the Fed may be able to do.

Rough seas ahead, mateys.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Seriously? - $28 Silver and $1490 Gold

"The rate hike cycle has left the building."

Jeffrey Gundlach


"Character is, in the long run, the decisive factor in the life of individuals and of nations alike."

Theodore Roosevelt

The Fed has failed.   Death by serial policy errors and a credibility trap.  They are in good company with their peers.

The longer term implications of this are quite interesting, especially given the upcoming elections in the US, the bonfire of the vulgarities.  And globally, something as old as Babylon and evil as sin slouches towards the darkness and the death of reason to be born, again.

And so now we know why gold was smacked down so hard at the end of May, in addition to a convenient opportunity for the well-informed to skin the call options holders for the June Comex gold contract.

Those hawkish comments and bullish tweets about the economy from the Fed in April were just so much spin and hot air.  But it did serve to facilitate the ongoing wealth transfer from the 99% to the pampered professional class.

There is little enough that is beneath them.   And the bar keeps getting lower.

The MSCI has decided that Chinese stocks are not good enough for their index.  Better luck next year.

There was intraday commentary related to the precious metals here.

On a breakout, the intermediate target for silver is $28 and change, and for gold about $1490.

As the fellow from the Comex told Kyle Bass, 'price will fix everything.'    If you let it.  And I doubt that they will, except under duress of men and markets.

The Fed is not the heart of it; they are merely the hired help.

Have a pleasant evening.