« Following up re Aetna, Tues., August 1, 2006, 1:46 PM | Main | A last hour save for the Nasdaq 100, Tues., August 1, 2006, 5:59 PM »

August 1, 2006

Precious metals holding onto the gains, Tues., August 1, 2006, 1:58 PM

At 9am this morning " well before the release of the consumer price deflator report that signifies inflation is moving higher (at least Y/Y) " the price of the precious metals complex started to zoom again.

So far, the spot prices are holding. Looks good.

http://quotes.ino.com/chart/?s=FOREX_XAUUSDO&v=i

002v023.gif

http://quotes.ino.com/chart/?s=FOREX_XAGUSDO&v=i

002v024.gif

As at 1:54 pm ET, the rising 5-min moving average seems to be holding, but the price has been side-tracking for almost two hours now. It'll be interesting to see where it goes from here.

Posted by Posted by Bill Cara on August 1, 2006 01:58:10 PM | Category: Gold

Discourse

remembering paul voelker.

i was a lot younger when this type of stuff happened before but i remember that the only way they could shut down inflation - and the price of oil and gold and silver - was to raise rates until the economy just tanked. double digit inflation and soaring unemployment.

if mr. cara's stagflation thesis plays out here, it's going to get rough.

Posted by: mtzion [TypeKey Profile Page] at August 1, 2006 5:27 PM [link]