Thanks for the article link, Bill. Another plug for gold is the fact that the crummy employment data on Friday and weaker ISM numbers this morning will probably offset the higher reported PCE number and help influence Bernanke to pause on 6/29. If he does, gold will be pushed up on a weaker dollar for most of the summer.

Bill-

Along those lines I would expect one more violent attempt to shake out weak hands before this goes higher, perhaps a move down to the 610 range or a bit lower. Gold is sitting right around its 50dma. If it breaks below then I will wait before picking up additional positions. If it breaks decisively above I will lay on new longs of GDX. The attack on gold needs a weaker oil price and a stronger day of $USD to pull it off. Not there today.

Bill,

If you are correct, the underlying issue is probably related to geopolitics or derivatives. If gold popped due to one of these issues, I have to think that the stock market will have some serious downside risk. This would probably be a bad way to improve my P&L, although improved it would be.

BTW, I have rethought something I mentioned before. "Something" is always behind changes at exchanges... Whether or not that "something" moves markets is only known in hindsight.

New more powerful battery uses
silver and zinc.

http://biz.yahoo.com/prnews/060601/lath022.html?.v=57

NYMEX silver warehouse stocks

http://www.nymex.com/sil_fut_wareho.aspx

Sign of the Times!

Everbank reporting today:

"The IMF's director of the Middle East and Central Asia, Moshin Kahn, has suggested that the Persian Gulf countries consider pegging their currencies to the euro, instead of the dollar. "We're advocating the Gulf states stay with the dollar for now, but think seriously about the euro" Moshin was quoted as saying... There are 6 countries currently pegging their currency to the dollar, that want to form their own single currency by 2010."

No indication they will do it now. Other countries have voiced an interest in switching out of dollars, but it's interesting an IMF Director brought up the suggestion.

Long: weakening dollar

This story was commented on here:
http://bigpicture.typepad.com/comments/2006/06/the_art_of_inve.html
excerpt:
I guess it is plausible but I tend to discount his commentary. It would be more plausible if the Comex just removed limits on gold.

I would surmise it is for the opposite reasons he discusses. I have no proof but the opposite argument is more logical. The Comex raised margin requirements across the board. Not just gold. That is typically to reduce speculation. I'd expect the same actions to follow in international commodities markets as Bernanke talked to both his EU and Tokyo equivalent today about this topic.

So, if you take that along with price limit removals, that implies they are making it more difficult to buy commodities and opening up volatility.

That would mean possibly wild swings in all commodities coupled with increased money to required to actually trade each contract. To me that is an attempt to shake speculators out of commodities and return the market to producers and consumers. Obviously, I have no more insight other than we've got government officials and central bankers trying to come down on the commodities parade and this action supports their efforts.

Bill, check out this read:
http://www.financialsense.com/Market/wrapup.htm

Gaaaaaa!!!!Holy Smokes!! It can't be good for gold that the new treasury secretary's former company, which he owns 3,230,024 shares, is net short over 47,000 futures contracts. Talk about a conflict of interest. Great data in that link by the way.

I hope the global market is ready to buy up all that gold that paulson is sure to unload to manipulate the price down.

Someone else posted this scenario earlier but did not link in the data. Anyway, it is great to be able to come to this blog and have lots of good relevant information posted by Bill and many readers. Hats off to everyone.