Gold is being stalled here at 1200 and silver at 17. These have no real significance except that they are 'headline numbers'.
But since the Comex price discovery mechanism is now a bucket shop, the punters may enjoy playing around these headline levels, especially since we are coming into an option expiration. Who the heck that isn't an insider is still bellying up to buck the tiger at that twisted faro table on the Hudson?
I think we may be nearing an extreme in bearish metal sentiment because the shills and trolls for the funds are throwing out some ridiculously scatological'analysis' on gold again. Well, water finds its level, and not only hope floats. This is why we can't have nice things.
Speaking of the scatological, someone shared a study with me showing that an increase in interest rates is almost necessary to insure the continued good financial health of JP Morgan in the near term. This zero interest rate policy is putting a serious squeeze on their officially subsidized vigorish.
And the Fed, having fostered yet another bubble in financial assets, and yes it is a bubble, they need to give themselves some room to cut rates to 'fix it' again.
So I do think we will have a lot of happy talk about recovery from very serious people, the Fed drones who have gotten into some fairly nice sinecures by going along with the financial flow for most of their careers. Insiders don't talk badly about the mistakes and follies of other insiders.
They won't be talking about the inferior and unlivable part time jobs that people are actually getting, the stagnant real median wage that is strangling organic demand, or the enormous concentrations of capital that they fostered which is increasingly enabling enormously abusive monopolies that will most likely take a generation of struggle to root out and overturn.
Keep an eye on China, and Russia. They have some big cards to play this year, and it will be interesting to see what they throw down.
Have a pleasant evening.
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