Undeterred by yesterday morning's vertiginous and nauseating selling bash the gallant and diminishing holders (as of Tuesday gold open interest declined ~4,000 contracts for a current absolute holders of ~492,000 contracts) of COMEX gold brought prices back up $10 bucks by the close and as of this morning we have tacked on an additional $10 bucks in active trade. So again we find ourselves at the portals of recent all-time highs and if you have made it this far do not succumb to ubiquitous blogosphere admonitions of multiple tops, seasonal highs, and dogmatic cycle adherence. We are here because our dear CBs continue to overtly diminish their currencies through various seductive and veiled policies of debt monetization...what else can they do? Earlier this week one of Uncle Ben's altar boys from Our Lady of St. Louis was sent out to remind us that higher short rates were still a handy tool to bludgeon inflation... another Paul Volcker wannabe who can't deal with the concept that this time it's different. Today: Stay the course as the quarter ends, the facts remain unchanged and compellingly directional.
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