Excerpts from Ed SteerFrom Ed Steer's Gold & Silver Daily
#1. The much-abused
Gartman Letter deserves credit for its instincts, expressed in the small hours of this morning: '
…weget the sense that something really quite ominous is upon us and thatsome news… and clearly not good news… is waiting out there on themarket’s periphery that shall tend, on balance, to weigh heavily uponstock prices, shall weigh heavily upon government intervention efforts;shall weigh heavily upon the global capital market’s collectivepsychology… we have the sense that we are at an historic turning pointfor the gold market, and that turning point was made mid-day yesterdaywhen the dollar began to strengthen, as commodity prices began toweaken, and yet gold held steady as a rock.'
#2. "ScotiaMocatta and MKS are both adamant that the rise stemmed from heavy fund buying, with MKS in particular noting "
large buying orders before the U.S. market open"... and concluding with... "
Large strategic buying from funds helped gold higher..."
"That being the case, a higher estimated volume might have beenexpected. It also appears that the leader of this advance stronglyprefers operating in Comex floor hours."
"Gold's price, at present, is in the hands of powerful US-basedoperators. In this situation, technical input can have real influence.ScotiaMocatta says this evening:
"Goldhas finally broken out of the topside of our 3-month consolidationtriangle at $965... We expect a good extension on this move with $991[May high], $1006 [2009 high] and possibly $1,032 [2008 high] astechnical targets. We expect the market to buy any dip now to $960/965with only a close back below $950 removing the bullish sentiment."
#3.
Today's first story is courtesy of Craig McCarty and is a post over at
zerohedge.com.
Wegelin Bank, the oldest bank in Switzerland is pulling out of the USA.In an 8-page report entitled "Farewell America" dated August 24th, thebank spells out the reasons for leaving. In the closing paragraph theystate the following... "The USA will remain the unquestioned militarypower and also an enormous repository of debt and other problems.Because they are painful, and there is always an inclination to shiftthe blame for them onto third parties, redimensioning processes alwaysharbour the potential for aggression. Switzerland is currentlyexperiencing just this. But it won't end there. Potential aggressionand economic progress are mutually exclusive. Which is why we are welladvised to take a general farewell of America. This will be painful,for
the USA was once the most vital market economy in the world. Butfor now, it's time to say goodbye." The entire article is linked
here.
#4. And lastly today, is another piece from Ambrose Evans-Pritchard from
The Telegraph in London. It's a blockbuster and your
must readof the day. The headline reads
"World faces hi-tech crunch as Chinaeyes ban on rare metal exports".
I didn't see silver mentioned, butthat day may come as well... and if it does, you'll see a three digitsilver price almost overnight. The link is
here.