Dear CIGAs,
Gold is down today because stops got run on the paper gold exchange. That came on the back of a strengthening dollar due to a weaker euro as a mirror effect.
Please return to December of 2009 when the impending dollar rally was sold based on a sustainable US economic recovery. That was enough to convince money managers. That demand then triggers the algorithms which fires off huge fund buying for what today is no reason at all.
Our friends at the COMEX use this phenomena to bomb gold and so many of you have a heart attack selling your insurance in both shares and metals. It is like living in a mental hospital where emotions drive all decisions and most of those are total madness.
Technicals run the short term
Fundamentals run the long term.
Insurance is not a day to day item.
Despite these facts, most of the public gets pick pocketed in the paper gold market as a ritual played out every 28 days. You are not better than Trader Dan therefore stop speculating before you have no money left to protect.
Jobless claims were anticipated lower to confirm December’s US economic recovery enthusiasm, but went the other direction today. This is another wound in the assumption that started your dollar rally in December.
Other reasons given for the general decline in commodities was fear that world demand for raw material will subside. As usual the West assumes it is the engine of world demand for everything.
The West is not anymore.
As the BBC special , "The Last Days of Lehman," clearly points out, the West is F**ked and we did it.
Read today’s article by Monty Guild on www.JSMineset.com) and get the right information on the economy of the East.
Moving on to Euroland, the ECB now wishes they did not make so much noise when the euro was trading at $1.52. Verbal intervention can go both ways. The media keeps screaming Greece and Spain are about to bury the euro, so off goes those algorithms that drive all markets nuts one way or another.
Between algorithms and OTC derivatives, the Finance Geeks have killed us all. As the BBC special says quite clearly, the West is f**ked.
Gold will trade at $1650 and then on to higher numbers.
The hotshot traders whose egos assure them they will never miss the game of monetary musical chairs, will be buried. As soon as they are broke from trading gold, the gold market will do all I have said it will do and the dollar will tank.
Wall Mart will not have any openings for greeters and kids have all the hamburger flipping jobs.
ECB chief says Greece takes steps in right direction
Trichet: Stability and growth pact must be respected; rates left unchanged
By William L. Watts, MarketWatch
LONDON (MarketWatch) — European Central Bank President Jean-Claude Trichet cautiously backed Greece’s austerity measures Thursday, while insisting that nations must respect European deficit and debt limits as worries mounted over debt woes across the periphery of the 16-nation euro zone.
The ECB chief, speaking at his monthly news conference in Frankfurt following the central bank’s widely-expected decision to leave its key lending rate unchanged at a record low 1%, said the bank is "confident" Greece will "take the appropriate measures" needed to put its budget in order.
European Central Bank President Jean-Claude Trichet told reporters Thursday the euro zone still faces major challenges but is heading in the right direction. He was speaking shortly after the ECB kept interest rates steady.
Trichet made it clear that the ECB sees the stability and growth pact, which limits deficits to 3% of gross domestic product, as sacrosanct. Greece last year ran a deficit of nearly 13% and has vowed to cut it to 2.8% by 2012.
Trichet, in remarks that echoed previous calls for adherence to fiscal limits, said the ECB continued to call for "strict implementation of the stability and growth pact."