SP 500 and NDX Futures Daily Charts - Wages, Wages, Wages

The ECB initiated its negative interest rate policy today, and despite a brief slump the equity market took off and set new highs, squeezing the bears. Gold and silver liked this policy, which is probably why they were beaten down further post-option expiry. Can't frighten the herd you know.

Tomorrow is Non-Farm Payrolls, and Wall St has us set up for a softball number of about 215,000 headline jobs.

Its a tough call but I would like to think that similarly to GDP if Washington has any bad news to get out they are going to do it now, rather than closer to the mid-term elections.

Mary Jo White once again denied that the market is rigged, but waved her royal hand towards those who have been calling out the blatant front running hypocrisy, and initiated a few token reforms.

Tomorrow I would watch the hours worked and the wages paid. The jobs being added are inferior, and certainly will not be supporting an increase in aggregate demand which is what this economy needs to become sustainable, without adding a substantial number captive customers in new colonies, that is.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - What a Draghi

Gold and silver were quiet today, as the markets shifted from foot to foot waiting to see what the ECB and Monsieur Draghi were going to do tomorrow with regard to any change in policy, with an eye towards the unconventional.

One could make the case that the Euro has already priced in some easing, but nothing dramatic. I am not sure what to expect Europe to do to counteract their deflationary tendency caused by austerity, but they must do something I would think.

Friday is Non-Farm Payrolls in the States, and so we have two big events back to back that will likely affect the metals in some way.

We had our first big tranche of June gold contracts standing for delivery yesterday.   That makes 133,600 ounces of gold bullion to date.  Of course nothing has been reflected yet in the warehouse inventories.  Mostly it seems as though the bullion banks are just shoving inventory around the plate.  And compared to the world market, that inventory is sparse.

Comex is the tail, still wagging the dog it appears, but less so every day.  Comex is largely the locus of the digital gold and silver trade. 

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Dog Day Afternoon

The trade was quiet today, subdued in the morning because of a miss on the ADP payrolls, with an afternoon push higher as the Fed Beige book came out telling a recovery story.  The Fed has little clue about what is happening in the real world, and its record of forecasting is horrific.

Same old tune, same old words.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Better Than This

"I don’t think there’s any doubt that quantitative easing enabled the rich and the quick. It was a massive gift… I hope that we do indeed succeed in being able to say in the end the wealth effect was more evenly distributed. I doubt it.”

Dallas Fed President Richard Fisher


"I have brought you to the Revels. Now dance if you can."

William Wallace

There was a fairly good sized move in the Scotia Mocatta warehouse of almost 100,000 ounces from eligible to deliverable.   The registered category is now fairly well set for the June delivery to be sure, barring an unlikely run on bullion.

The Financial Times notes that rigging the gold fix around digital derivatives 'was routine.'  The pigmen have been shamelessly portraying the Barclays rig as a one-off.

As you know, Scotia is one of the three banks remaining in the London gold fix.

A few more June contracts stood for delivery.

We used to be the good guys, or at least better than this.  Good enough for a few honorable men and women to remind us to feel shame when we were not doing the right things, and for those in charge to at least pretend to bend a knee to truth. 

Good enough for at least a few to remember that power and money are not the end all and be all, and not to treat their God and their freedom like a mockery, a vending machine and a sock puppet for their own selfish desires.

Perhaps we never really were that good at all, not just a few bad people, but the most.  And it was just the happy illusions of youth.

Or perhaps this is just the big question that faces every generation, the question of good and evil, and of freedom.  And this is our moment.

Have a pleasant evening.