The word this morning is Greek default.

The word this morning is Greek default. The markets just can’t seem to get their head around that this is inevitable. However that short term pain is only symptom of a greater illness to come if they do not remove this cancer. So there is a lot of talk for the Greeks to leave the Euro this would help both the Euro and the Greeks. I don’t foresee Germany planting a flag to foreclose on Greece anytime in the future. So the Euro+ is off and gold is up. However the more industrial metals have remained weak on what continues to appear an ever slowing global economy, including the China pullback. Safe haven demand for gold is stable as determined by the stability of the largest ETF GLD. But the PGMs still continue to shrink. Silver on the other hand recovered some investment demand on ETFs but is unlikely to gain any traction soon due to its volatility. Today’s ISM Index and Construction Spending were both positive indicating some growth which should help the industrial sector but not enough to counter the expected decline in Asia. But one factor that needs mentioning is the spread between AU and Pt has widened and it appears to most is that it will be maintained this way for quite some time. Auto sales report today could help the PGMs if it is better than expectations.

10/3/2011 10:38			Last		%Change			Low		High
Au- Dec			1,653.80		1.94			1,620.00		1,667.00
Pt-Jan			1,502.70		(1.37)			1,495.50		1,535.50
Pd-Dec			594.65		(3.23)			587.85		615.45
Ag-Dec			30.590		1.680			29.670		31.430
EFPs			Au 1.60/2.20		Pt 3.5/7.5			Pd .50/4.5		Ag 0/6
London			AM		PM			Minor		PGMs
Au			1,660.00		1,655.50			Rh		1675
Pt			1,520.00		1,501.00			Ru		160
Pd			604.00		595.00			Ir		1100
Ag			31.05		DJI			10,860.07		(53.31)
FX			Last		%Change			Low		High
EUR			1.3299		(0.64)			1.3292		1.3381
JPY			76.59		(0.60)			76.48		77.25
GBP			1.5481		(0.64)			1.5476		1.5585
CHF			0.9120		0.47			0.9071		0.9130
Others			Last		%Change			Low		High
Crude- Dec			78.020		(1.650)			78.960		77.030
Copper-Dec			3.068		(2.440)			3.082		3.001
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES
Date	Time	Statistic		For		Actual	Forecast		Expects		Prior	Revised
3-Oct	10:00 AM	ISM Index		Sep		51.6	50		50.5		50.6	-
3-Oct	10:00 AM	Construction Spending		Aug		1.40%	-0.60%		-0.50%		-1.30%	-
3-Oct	3:00 PM	Auto Sales		Sep		-	NA		4.1M		3.97M	-
3-Oct	3:00 PM	Truck Sales		Sep		-	NA		5.5M		5.43M	-