Gold Daily and Silver Weekly Charts - Deliveries on Paper

Gold and silver held to an upward drift today, with a little more strength in Uncle Buck.  One gets the sense that the 'risk on' boys were taking a little out of equities and putting the proceeds into safer harbors.

The big movers for the metals this week will most likely be the Bank of England rate decision and the US Non-Farm Payrolls Report.

And as always, any exogenous hiccups in the smooth seas being prepared by the central banks, who are spreading the oil of excess liquidity and negative rates on the choppy seas of poor economic growth.

Gold in particular is at an interesting juncture on the charts again.   And as the stock commentary below points out, stocks have been on a tear for some time, and are looking a bit fully valued and even 'toppy.'

There were more deliveries in gold last Friday, with the takers being the usual suspects.   Interesting that despite all these deliveries that the gold inventories in the warehouses move very little.

Silver bullion is in for a quiet August on the Comex it appears.

The gains that have been achieved in the mining stocks year-to-date have been quite impressive.

I am wondering if and when those gains and higher metals prices will be reflected in real earnings.  Right now there appear to be quite a few 'if-come' bets.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Yawning Divergence Between Tech and Broader Market

If you look at my two favorite stock index charts below you can easily see that while the SP 500 is caught (or coiling if you prefer) within a trading range in the futures from about 2150 to 2170,  while the big cap tech Nasdaq 100 has continued to go parabolic, with an interesting 'island top' potential formation being set today.

In other words, something has got to give here, and it is not clear whether the move will be up or down, but without central bank interference 'down' seems more probable.

And speaking of central banks, the Bank of England will be mulling over a rate cut in the latter part of this week.

The big tickle for US economic data will be the Non-Farm Payrolls report for July which comes out on Friday.

Have a pleasant evening.

Vanity of Vanities

Only love endures.

Then he said to the crowd,
“Take care to guard against all greed,
for though one may be rich,
one’s life does not consist of their possessions.”

Then he told the gathering a parable.
“There was a rich man whose land produced a bountiful harvest.
He asked himself, ‘What shall I do,
for I do not have space to store my harvest?’
And he said, ‘This is what I shall do:
I shall tear down my barns and build larger ones.
There I shall store all my grain and other goods
and I shall say to myself, “Now as for you,
you have so many good things stored up for many years,
so have your ease, eat, drink, be merry!’

But God said to him,
‘You fool, this very night your life will be demanded of you;
and the things which you have hoarded, to whom will they belong?’
Thus will it be for all who store up treasures for themselves,
but are not rich in the things that matter to God.”

Luke 12:15-21

Gold Daily and Silver Weekly Charts - Monster First Delivery Day For August Gold

Nova Scotia offered up 406,700 ounces of gold from their house account for the first delivery day in August.  That is the biggest number I have seen in some time.

And they sold it at what was close to the low for yesterday at $1,332.  That's what one gets when they sell big in an active month which August is for gold.  What were they thinking?

The silver deliveries were fairly inconsequential for August, so I did not bother to update them.

Uncle Buck, aka la douleur du monde, took the gas pipe on that horrible GDP number, at 1.2% versus 2.6% expected, with a downward revision to 0.8% in the prior period.   No wonder the Fed balked at even a fairly symbolic rate increase this week.  They may play dumb, but they know.

Gold is on the threshold of breaking out as you can see on the chart below, and silver is looking fairly positive as well.

But, and isn't there always a but these days, next week will be the July Non-Farm Payrolls Report. as indicated in the preview of next week's economic news below.

So let's see how the precious metals sort their way through that next hurdle on their way higher.

Have a pleasant weekend.

Le Père Jacques Hamel, un martyr de la Foi, 26 Juillet 2016

At 85,  Rev. Jacques Hamel was well past retirement age.

But he kept in shape and kept on going — baptizing infants, celebrating Mass, and tending to the parishioners of St.-Étienne-du-Rouvray, a working-class town in Normandy where he had spent much of his life.

Father Hamel’s throat was cut, while he was offering the sacrifice of the Mass, by a young man claiming allegiance to the Islamic State.