(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
GOLD SPIKES ON WEAK EMPLOYMENT DATA
September 7, 2012
Non-farm Private Payrolls came at 103k vs. consensus of 144k.
Gold and silver are spiking on the assumption that because of weak employment data the Fed in December 12, 2012 meeting will announce QE3.
Gold futures are at $1725, silver futures are at $33.13, and oil futures are $96.49.
S&P 500 resistance levels are 1337, 1444, and 1450; support levels are 1424, 1415, and 1410.
DJIA futures are up 34 points.
ECB KEEPS RATES UNCHANGED
September 6, 2012
Contrary to many expectations, especially those of gold and silver bulls, ECB left its bench mark unchanged at 0.75%. Expectations were for a reduction in rate.
The decision indicates that unlike the Federal Reserve in the United States, ECB is concerned about maintaining the value of euro and containing inflation.
ADP number will be at 8:15 am ET. More importantly Draghi’s press conference starts at 8:30 ET.
Details of ECB bond buy program are still not out. We again caution that if it is sanitized (please see a prior post for details), no new money will be created thus the whole premise behind recent gold and silver up-move will be wrong.
Gold futures are at $1708, silver futures are at $32.80, and oil futures are $96.40.
S&P 500 resistance levels are 1415, 1424, and 1437; support levels are 1400, 1380, and 1368.
DJIA futures are up 52 points.
CAUTION FOR GOLD BULLS: ECB BOND PURCHASES MAY BE STERILIZED
September 5, 2012
All eyes are on Draghi’s bond buying announcement tomorrow.
Gold and silver bulls need to be cautious in that bond buying may be sterilized. Sterilization means that ECB will remove money from elsewhere equal to the money it spends on buying bonds. The net result will be not increase in money supply.
Of course the momo crowd neither cares nor understands that if there is no increase in money supply, their rationale in buying gold and silver is wrong. Gold and silver are at present under the control of the North American momo crowd.
It is always possible that the indications we are receiving today are wrong. We will know for sure tomorrow morning.
Gold futures are at $1691, silver futures are at $32.25, and oil futures are $95.45.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are down 16 points.
LOTS OF DATA THIS WEEK TO MOVE THE MARKET
September 3, 2012
ISM today at 10:00 am ET, ADP tomorrow at 8:15 am ET, ECB meeting on Thursday, and finally the mother of all numbers in the form of August jobs report on Friday at 8:30 am ET.
Gold futures are at $1690, silver futures are at $32.11, and oil futures are $96.53.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are up 4 points.
