As much as I would prefer to see dramatic events unfold in what are the most politically-driven markets in the world, in my heart of hearts i almost always bet on the uninteresting to happen. Yesterday’s commentary made the argument that if anything was likely to happen today it would be negative for Gold (AMEX:GLD) and Silver (AMEX:SLV), which it was, mildly. Gold traded down as low as on the $1652.45 on the October contract before settling at $1656.25, down around $9 over Tuesday.
Silver, on the other hand, flirted again with $31 before selling down slightly to $30.73 per ounce on the December contract after Wednesday’s afternoon Globex session. Now begins the dangerous period of when there will be an attack on the metals before the delivery period for September starts, which is Tuesday. Between now and the close of the markets on Friday the big statement by FOMC Chairman Ben Bernanke will take place which if I were truly a betting man will downplay the idea of QEIII creating enough of a cover story to allow the metals to be attacked one last time before Labor Day bullish period begins.
It is for these reasons that one should always have cash on hand ready to be deployed to buy on manufactured dips. This will be, however, the first month where the owners of the London Metals Exchange will be Hong Kong Exchanges. Whether that has any effect on how or who stands for delivery next week is anyone’s guess.Previous Post » Soybeans Keep Rising While Commodities Pause