On the Bell- Gold up again, China Buys, and OPEC Lies

Before the Bell


Trump's immigration ban awaits San Francisco ruling. Crude drops as U.S. production is predicted to reach 48-year high, and metals are rallying, with Copper leading this morning up 4 cents at $2.6730 last..

China Pattern in Metals 

De-dollarize via buying non perishable commodities, weaken the yuan, then when retail panics and causes a spike, raise margins to punish the public. The US doesn't play that game ( as obviously).

Meanwhile Gold is up again despite a strong USD. For perspective, the USD was very strong yesterday morning, and dumped near EOD, but retained some gains. We are seeing a revaluation of Gold vs the Dollar again. Perhaps on its own merits, perhaps on EU uncertainty. If the former, then it will hold. If the latter, then once EU perception changes, get ready for a Gold correction. Gold is NOT overbought by any means on the weekly chart. And the USD is near a double (h/t TDOK's Bondskew for analysis) top. Watch and trade accordingly. It may be time to drag out the Broccoli man video teaching Gold players to BTD as he educated the intelligent yet idiotic over the last 8 years in stocks. Daily drivers for Gold HERE

 

Interactive Chart HERE

 

OIL comment:


The crude oil build is ridiculous considering the OPEC agreement. It is almost as if the number is off by a decimal point. And to our experienced eye it says
the OPEC countries like Iran were pumping and filling barges pre-deal in hopes they could dock after the deal and sell at higher prices.
That and cartels don't work when half the production is not bound by the deal, like Russia. 

 

Stocks. - Don't Be Stupid

Who cares? BTD. Seriously: ignore the vix, the market's easiest path is higher especially given that the likelihood of a Fed hike soon has diminished. The Vix is not a directional indicator never has been. So CNBC, FOB, stocktwits are idiots on this matter. Ask if you want to learn why, but it will cost you. Or Google skewness and leptokurtosis. If stocks rally and Job reports come in crappy, then the Fed does nothing. If stocks dive, then the Fed unleashes the QE4 Kracken. Just buy the dip. And don't forget to sell the rally and reallocate money into physical assets like China is.-Soren K.

 

Good Luck

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c reiner (not verified)

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This gold price is also so low it will deter nobody. As you mentioned that client buying all that silver has just as many people like him who will be buying gold because of its low manipulated price, all metals investors see as a gift.We all know what kind of a scam and fraud these gold and silver "certificates" issued by these parasitic fraud banks (who don't have a single physical ounce to back up the paper shit they sell) are, so people with any common sense will buy the hard physical metal. The scrap gold market has run dry; these stupid gold buying places are dropping like flies, because nobody sane, in the right mind is selling at this laughable 1230 level...To get more gold on the market, the price will have to increase SIGNIFICANTLY. Gold Maples Eagles and Buffalos are selling at record levels from the mints too.
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Anonymous (not verified)

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Silver maple leaf demand at independent locations is near all time highs; the 17.70 price is a gift to people wanting to invest in silver on medium, large and massive scales. I just recently assisted one of my clients in acquiring about $2.9 million in physical silver bullion of all - it will be shipped and stored out of country of course. It is not safe to keep that kind of assets in metals anywhere within North America or Europe.
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Anonymous (not verified)

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Silver maple leaf demand at independent locations is near all time highs; the 17.70 price is a gift to people wanting to invest in silver on medium, large and massive scales. I just recently assisted one of my clients in acquiring about $2.9 million in physical silver bullion of all - it will be shipped and stored out of country of course. It is not safe to keep that kind of assets in metals anywhere within North America or Europe.
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Akilade Ayotunde (not verified)

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Interest rates are an indication of the cost of money- but could they also by extension be an indication of the real cost of precious metals?
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Anonymous (not verified)

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Gold is becoming even more scarce, as of now, because of last year's downward manipulation from Sept to Dec...
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marvens

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Is it possible Gold is forming a huge INVERSE cup/handle going back to last year....could be sell signal
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Trump-Friend (not verified)

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TRUMP MAKES GOLD GREAT AGAIN: http://de.blastingnews.com/wirtschaft/2017/02/goldpreis-wird-von-trump-nach-oben-getrieben-001452917.html The world is afraid, what he will do next, but the world is buying gold because they are afraid!
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Anonymous (not verified)

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Here's to this...