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Market Optimistic On Central Bank Intervention

Tyler Durden's picture




 

From Gold Core

Market Optimistic On Central Bank Intervention

Today's AM fix was USD 1,613.00, EUR 1,300.39, and GBP 1,032.39 per ounce.
Yesterday’s AM fix was USD 1,606.75, EUR 1,299.43 and GBP 1,032.28 per ounce.

Silver is trading at $28.08/oz, €22.71/oz and £18.01/oz. Platinum is trading at $1,415.70/oz, palladium at $582.50/oz and rhodium at $1,100/oz.

Ireland observed a national holiday on Monday.

Gold climbed $8.40 or 0.52% in New York yesterday and closed at $1,611.20/oz. Silver hit a high of $27.985 and closed with a gain of 0.5%.


Gold Prices/Rates/Fixes /Volumes – (Bloomberg)

Gold traded sideways Tuesday, maintaining gains from the previous 2 sessions as investors waited for action from the European Central Bank looking for intervention in solving the Eurozone debt crisis.

Market players are watching for any details on the ECB’s bond purchasing plans, after bank chief Mario Draghi said last week that the ECB would target short-term debt, fuelling optimism in the bond markets.

A Reuter’s poll of economists on Friday highlighted that they expect the Fed to start QE3 in September, but a top Fed official said that a stimulus package so close to a presidential election would not be prudent.

Since the ECB conditioned it would buy more government debt from Spain & Italy if they agreed to strict austerity packages, this has decreased pressure on either country to act quickly.

The Financial Times interviewed Ken Wattret, a BNP Paribas economist who said: “If people think this will all be sorted in a matter of days, or weeks, then they will be disappointed. We could be in limbo for months.”


Cross Currency Table – (Bloomberg)

US Economic data out this week follows: Consumer Credit - Tuesday, Productivity and Unit Labor Costs - Wednesday, Initial Jobless Claims, the Trade Balance, and Wholesale Inventories - Thursday, and Import and Export Prices plus the Treasury Budget - Friday.

China is set to release inflation, trade figures and industrial output data for July, this week. China still has a strong affinity for the yellow metal.  

Gold flow from Hong Kong increased 6 times for the first half of the year, while flow in the opposite direction was unusually high for June.

China produced 36.3 tonnes of gold in June sending the total output to 177 tonnes up 7.7% for the year.

 

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Tue, 08/07/2012 - 07:57 | 2684091 Shizzmoney
Shizzmoney's picture

Consumer Credit - Tuesday, Productivity and Unit Labor Costs - Wednesday, Initial Jobless Claims, the Trade Balance, and Wholesale Inventories

These numbers should provide for a good laugh.

I expect the DOW to go up either way because.....well, why wouldn't it?  More unemployment = great for corporate profits!

Tue, 08/07/2012 - 08:17 | 2684119 GetZeeGold
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Does anyone have any Jack Daniels? This Koolaid is making me sick.

 

Tue, 08/07/2012 - 08:26 | 2684143 merizobeach
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"We could be in limbo for months.”  Gosh, really?  I mean it's only already been two freakin' years.

Tue, 08/07/2012 - 08:27 | 2684145 GetZeeGold
GetZeeGold's picture

 

 

I'll drink to that! Smok'em if you gottem.

 

 

Tue, 08/07/2012 - 10:37 | 2684529 merizobeach
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It was about 1:30pm, and the Kossuth club--an always-dark-inside pub in Blackrock, CT owned by a Hungarian grandmother who cooked a heavy, rich goulash--had just opened for the day, and Iggy was sitting at the bar, sipping his first Stoli-tonic.  Charlie walks in off the street: "Hey, Iggy, what're you doin' tonight?"  Iggy: "I'm already doin' it".

Tue, 08/07/2012 - 08:59 | 2684227 FRBNYrCROOKS
FRBNYrCROOKS's picture

We could be in this doldrums for decades if the FRBNY continues this chicanery, which they will, for the next ten years or until the Central bank is eliminated.

Tue, 08/07/2012 - 08:40 | 2684182 PhilB
PhilB's picture

When adrift at sea, we must learn to ride the waves with elan. Expect to be seasick for a few more years to come. Expect false sightings of "land ahoy!" and also desperate shouts of "the end is nigh"! from desperate souls.

These storms will be hellish but we will find shore eventually. Expect many casualties along the way and beware of sharks that will pick off the weak and unsuspecting!

 

Happy sailing.

Tue, 08/07/2012 - 08:00 | 2684096 Hype Alert
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Watching Bloomberg and they just went through a list of central banks talking about what they are going to do to save the economy.  Not one word on the spending that created the debt.  Not one word on putting the governments in line that created the mess. 

 

How can anyone be optimistic on this?

Tue, 08/07/2012 - 08:06 | 2684101 TrainWreck1
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I am optimistic the can shall be kicked down the road until there is no more road.

 

Tue, 08/07/2012 - 08:20 | 2684123 GetZeeGold
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Where we're going......we don't need roads.

 http://www.youtube.com/watch?v=flge_rw6RG0

 

Tue, 08/07/2012 - 08:12 | 2684107 Snidley Whipsnae
Snidley Whipsnae's picture

How can anyone be opmistic on this???

Why do you think that they planted that gigantic statue of a bull on Wall St?

What if they had, instead, planted a gigantic statue of a bear?

Do you suppose the 'mood on the Street' would be the same?

Anyway, so a bunch of trading algo computers feel optimistic that central banks will print more funny money... Who really gives a shit?

We all know, or should, that more funny money will be printed... it's the only way to move the can further down the road... and provide one more day in the sun.

Tue, 08/07/2012 - 08:15 | 2684114 TrainWreck1
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What if they had, instead, planted a gigantic statue of a sheep?

Tue, 08/07/2012 - 08:20 | 2684125 Snidley Whipsnae
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Sheep? Excellent idea!

The old joke: Visiting high-roller client to investment banker while standing in banker's office; "Where are the photos of the customers yachts?"

Tue, 08/07/2012 - 08:25 | 2684141 GetZeeGold
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What if they had, instead, planted a gigantic statue of a sheep?

 

We've tried everything else......what the hell. Let's give it a shot.

 

Tue, 08/07/2012 - 08:30 | 2684152 merizobeach
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Well, we could put a statue of a bear--about twice the size of the bull--directly behind the bull, like it's sneaking up on it.  Then we put a ten times larger statue of Uncle Sam riding a sheep about to trample the bear and the bull.  We can give Uncle Sam a nascar jersey with the logos of all the banks on it.

Tue, 08/07/2012 - 08:44 | 2684192 Snidley Whipsnae
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Or, we could put the statue of the sheep UNDER the bull... The bull would be satisfying it's basic sexual urges with the help of the sheep.

Tue, 08/07/2012 - 08:36 | 2684167 Law97
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That would be the most appropriate with all the shearing and slaughtering.  Either that or a giant statue of a lemming.

 

Tue, 08/07/2012 - 09:01 | 2684228 The Final Countdown
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A gigantic statue of a helicopter would have been most appropriate.

Tue, 08/07/2012 - 08:20 | 2684129 Dr. Engali
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Maybe a statue of a printer would be more appropriate since that's the only thing propping up this sham of a market.

Tue, 08/07/2012 - 08:30 | 2684151 Hype Alert
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It's the old Charlie Brown trusting Lucy to hold the ball while he attempts to kick it again.  I know people want things to be better, but doing the same thing over and over expecting different results is amusing, not optimistic.

Tue, 08/07/2012 - 08:33 | 2684163 merizobeach
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But we don't ever feel sorry for Charlie Brown, do we?  No, we don't.  Muppets get Corzined, and they've got it coming.  Too dumb to play is no excuse.

Tue, 08/07/2012 - 08:32 | 2684160 Hype Alert
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And of course, nobody saw it coming.

Tue, 08/07/2012 - 08:04 | 2684098 rsnoble
rsnoble's picture

This market is hitting major resistance/trendlines there should be some selling pressure very soon. The only case against that is the absence of volume.

Tue, 08/07/2012 - 08:05 | 2684100 Poor Grogman
Poor Grogman's picture

Another week another C/B intervention.
No wealth created just rearranged vertically upward.
Welcome to the new normal....

Tue, 08/07/2012 - 08:23 | 2684137 LMAOLORI
LMAOLORI's picture

 

 

There will be QE just in time for the election

"No wealth created just rearranged vertically upward."

 

Federal Reserve Chief Ben Bernanke believes that by pulling up stocks, the masses will feel richer and spend more on consumer goods, thus lifting up the economy. This is based on Karl Marx's reflexivity theory (George Soros essentially paraphrased Marx) that states by turning the small wheel (stocks), you can turn the big wheel (economy), which in turn will come back and turn up the small wheel (stocks). Bernanke subscribes to such a theory, and he wants QE to lift up the small wheel (stocks), which he hopes will lift up the big wheel (the economy).

 

Tue, 08/07/2012 - 08:37 | 2684174 Law97
Law97's picture

The only problem is that 90% of the stock market is owned by the top 10%.  Er, ...actually, that's brilliant!

 

Tue, 08/07/2012 - 08:06 | 2684102 RobotTrader
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DAX now trading sideways, any significant move up from here and it will be hitting new 4-year highs.

Tue, 08/07/2012 - 08:10 | 2684105 john_connor
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Limbo means markets will levitate or melt up.  If one is a trader, it may be prudent to just pack your bags until after the election and let the cannibals eat themselves.

Tue, 08/07/2012 - 08:21 | 2684128 LongSoupLine
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...but a top Fed official said that a stimulus package so close to a presidential election would not be prudent.

 

but, but...Hilsenrath said...

Tue, 08/07/2012 - 08:21 | 2684130 One World Mafia
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Any excuse to create another stock market bubble.

Tue, 08/07/2012 - 08:22 | 2684134 Meesohaawnee
Meesohaawnee's picture

another day another fraudulent ramp job.. getting so old. no wonder why  the lights are near out. Welcome to the peoples republic of amerika.. and we had the nerve to make fun of the chinese. see yall tomorrow.  i hear the words of Robert Duvall in Apocalypse.. "someday this wars gonna end".. someday this fraud is gonna end.

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