Monday, April 18, 2011
Gold This Morning: On the Road in Warsaw, Indiana --Jon
Traveling back roads (it's actually US 12, once upon a time a major East-West route) yesterday, through Michigan and Indiana in my 1951 Chrysler New Yorker, I gaze through drizzly mists (snow today?) and spy sequential small town American Main Streets that capture distinctive historical relevance and while not absolutely vivid yet in enterprise and social commerce that visual has certainly not disappeared as so often portrayed by our urban diet of main stream media or blogging survivalists. Gold? Reasonably active overnight trade with sellers pressuring prices. Let's review the facts...GSR at ~34.60 now simply manifests excited and impassioned silver buying energized mostly by belabored analysis of physical shorts and manipulation; we shall not dignify today's number as continued increasing liquidity; it's there. deal with it. Gold open interest rose last Thursday by 16,000 contracts. This is a remarkable number but the absolute open interest levels remain casual and incurious and suggests you should not wait until you have to queue up. Most interesting to me were last week's COT numbers that are calculated always as of the Tuesday close (don't ask me why). So last Tuesday, if you recall, was the day when we were thoroughly punished with a $20 buck intraday collapse but surprisingly the COT numbers showed large and small specs lightening and commercials, generally forward sellers, buying net modestly... In the land of the blind, the one-eyed person is King or Queen. Today: I think active gold buyers are fading and ready to buy easier prices. Just deal with the fundamentals and if you can't, then accept that we have a big round number dead ahead that at the least will be challenged. Now I have to mount up and head to Indianapolis.