Gold hit the high of 1754 in December and backed off

Gold hit the high of 1754 in December and backed off. For this gold run to stay strong it would need to break above that level. Is it possible. I think so. After yesterday’s euphoria that Europe will not collapse and the stock markets and base commodities rallied in exuberance, the cooler heads are starting to analyze and are now showing serious concern. The punishment that the Greeks need to endure and their apparent reliance on China investment leaves much to be desired. Gold most likely will take another run this afternoon before London goes home. The other precious metals will continue to benefit from the moves and follow for the short term. Today’s US numbers were weak

10/28/2011 10:14	Last	%Change	Low	High
Au- Dec	1,742.40	(0.30)	1,733.00	1,754.00
Pt-Jan	1,640.30	(0.06)	1,628.60	1,661.50
Pd-Dec	660.70	(1.37)	651.00	675.00
Ag-Dec	34.890	(0.630)	34.715	35.700
EFPs	Au 1/1.70	Pt 2/6	Pd .25/4.25	Ag -2/4
London	AM	PM	Minor	PGMs
Au	1,735.00	1,741.00	Rh	1630
Pt	1,645.00	1,629.00	Ru	140
Pd	667.00	659.00	Ir	1100
Ag	35.42	DJI	12,181.61	(26.94)
FX	Last	%Change	Low	High
EUR	1.4144	(0.30)	1.4131	1.4201
JPY	75.74	(0.25)	75.68	76.00
GBP	1.6095	0.00	1.6067	1.6124
CHF	0.8648	0.56	0.8591	0.8651
Others	Last	%Change	Low	High
Crude- Dec	93.000	(1.020)	93.930	92.010
Copper-Dec	3.669	(0.620)	3.750	3.616
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

Date	Time	Statistic	For	Actual	Forecast	Expects	Prior	Revised
28-Oct	8:30 AM	Personal Income	Sep	0.10%	-0.20%	0.30%	-0.10%	-
28-Oct	8:30 AM	Personal Spending	Sep	0.60%	1.20%	0.60%	0.20%	-
28-Oct	8:30 AM	PCE Prices - Core	Sep	0.00%	0.10%	0.10%	0.10%	-
28-Oct	8:30 AM	Employment Cost Index	Q3	0.30%	0.60%	0.60%	0.70%	-
28-Oct	9:55 AM	Michigan Sentiment - Final	Oct	-	57	58	57.5	-

Commodities are the way to go

With the final deal made clear in Brussels yesterday it has convinced the markets that commodities are the way to go. After last month’s sell off caused by Mann Group and Dexia Financial troubles the market seems to feel the field is clear and we are back into the same strategy. With money moving back into the commodities we can expect to see moves back to highs of the not too distant past. Still US economic news continues to improve but growth is slow. US will likely continue its path towards growth. Today’s numbers close to expectation not a major factor. Sorry for the odd format, technical difficulties at the location I am at this morning.

Bid	Ask	+/-	LDN	High	Low
Gold	1723.20	1724.00	6.85	15:09	1729.75	1706.20
Silver	34.14	34.19	0.86	15:09	34.20	33.16
Platinum	1614.00	1624.00	30.00	15:08	1619.00	1591.00
Palladium	667.00	672.00	27.50	15:09	671.50	644.00

LBMA Gold AM $	1708.00	10:35	1817.00
LBMA Gold PM $	1718.00	15:05	1794.00
LBMA Silver $	33.5500	12:08	40.3400
LPPM Platinum AM $	1603.00	09:58	0.00
LPPM Platinum PM $	1608.00	14:20	0.00
LPPM Palladium AM $	653.00	09:58	0.00
LPPM Palladium PM $	667.00	14:20	0.00

Date	Time	Statistic	For	Actual	Forecast	Expects	Prior	Revised
27-Oct	8:30 AM	Initial Claims	22-Oct	402K	400K	402K	404K	403K
27-Oct	8:30 AM	Continuing Claims	15-Oct	3645K	3700K	3700K	3741K	3719K
27-Oct	8:30 AM	GDP-Adv.	Q3	2.50%	2.10%	2.30%	1.30%	-
27-Oct	8:30 AM	GDP Deflator	Q3	2.50%	2.20%	2.50%	2.50%	-
27-Oct	10:00 AM	Pending Home Sales	Sep	-	0.00%	-0.90%	-1.20%	-

European economic crisis precious metals continue to benefit.

With no clear resolution in sight for the European economic crisis precious metals continue to benefit. Expectations that a lot of easing will be part of the solution has made commodities as the investment of choice in the short term. Gold of course has benefited better over recent days in its Safe Haven status and is garnering a strong basis for a continued upside move. Platinum looks kind of cheap compared to the Palladium price which may look a little too positive in this recent move. Silver continues to drag its feet and will still be a surprise if it can get enough interest to move any higher. Meanwhile volumes on the CME silver contract remain subdued due to the high margins. A possible reason for its lackluster performance. In their attempt to drive down volatility they have actually driven out the primary supporters who now have moved more business into OTC whereas the High Frequency traders still remain involved since that doesn’t truly affect their business model and they are the primary drivers of the high VOL in current times. US Durable Goods orders and Home Sales this morning came out much better than expected and the US Dollar is trading higher against the Index at the moment. Still the markets are waiting to hear from Brussels some definitive direction.

10/26/2011 10:45	Last	%Change	Low	High
Au- Dec	1,716.10	0.92	1,696.50	1,724.40
Pt-Jan	1,591.10	1.42	1,564.10	1,599.90
Pd-Dec	653.50	0.21	643.45	659.50
Ag-Dec	33.380	0.990	32.905	33.950
EFPs	Au 1/1.6	Pt 2.50/6.50	Pd 0/4	Ag -2/4
London	AM	PM	Minor	PGMs
Au	1,713.00	1,715.00	Rh	1630
Pt	1,566.00	1,580.00	Ru	140
Pd	648.00	649.50	Ir	1100
Ag	33.30	DJI	11,759.86	53.24
FX	Last	%Change	Low	High
EUR	1.3827	(0.57)	1.3824	1.3975
JPY	75.94	(0.18)	75.67	76.16
GBP	1.5925	(0.47)	1.5918	1.6041
CHF	0.8828	0.55	0.8726	0.8835
Others	Last	%Change	Low	High
Crude- Dec	91.580	(1.700)	93.920	91.500
Copper-Dec	3.5835	4.810	3.584	3.562
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

Date	Time	Statistic	For	Actual	Forecast	Expects	Prior	Revised
26-Oct	8:30 AM	Durable Orders	Sep	-0.80%	-1.50%	-1.00%	-0.10%	-
26-Oct	8:30 AM	Durable Orders -ex Transportation	Sep	1.70%	-0.10%	0.40%	-0.40%	0.00%
26-Oct	10:00 AM	New Home Sales	Sep	313K	290K	300K	295K	-
26-Oct	10:30 AM	Crude Inventories	22-Oct	-	NA	NA	-4.729M