Gold Rally Is Short-Lived

Gold: Gold traded as high as $931 overnight, influenced by the euro strengthened on the back of better than expected German manufacturing orders.

The rally was short lived however, the market has resumed its summer range and is currently trading at $920. In the UK the Halifax House Price Index showed a small decline for June, contradicting other indices that showed house prices rising.

In the U.S., the Commodity Futures Trading Commission is considering tougher regulation to curb speculative investing on the oil futures market. These attempts have been given political backing in Europe by both French and UK political leaders Sarkozy and Brown.

Silver: Silver is currently trading at $13.07.

PGMs: Platinum is trading at $1,109 and rhodium at $1,285.

Disclosure: No positions

Comments

[DONE_SONZ:]

The sell off in gold doesn't add up.When the market feared a crash in the stock market,(debt default)gold rose above $1000 at the same time the dollar was at 87-88 range.Then, when the market figured out that inflation is the end game(inflate and debase)gold went up again to $990,dollar under 80.What has changed except the possible direction of the market?

Jul 08 12:23 PM

[Vuke:]

It's the CFTC curb on commodities (oil). Speculators are unloading thus creating margin calls. Gold, naturally, gets caught in this.

Nice buying opportunity in physical and stocks. Good opportunity to short the dollar as well.

On Jul 08 12:23 PM DONE_SONZ wrote:

> The sell off in gold doesn't add up.When the market feared a crash
> in the stock market,(debt default)gold rose above $1000 at the same

Jul 08 12:34 PM

[5142152-337:]

Whatsup wi....Hmmmmm....and I thought it was just ME thinking this about those putz.

Jul 08 05:39 PM

[TERN:]

What is happening with the PM's is that the realisation is dawning that there is massive overcapacity in the economy, that inflation is still years away and that in the meantime cash is king.

Gold and silver could fall a bit more in the short term.

Jul 09 02:07 AM