Good Hump Day Morning Folks,
With the FOMC data coming out today, one has to expect the precious metals to trade lower, and they are with Gold at $1,284.20 down $1.50 with the low at $1,279.20 and a high at $1,285.50. The Tag-A-Long Kid (Ag) is trading at $14.91 down 7.1 cents with the low at $14.875 and the high to beat at $14.985. The US Dollar is barely moving with the value pegged at 97.105, down 9.6 points and close to the low at 97.065 with the high at 97.27. All this non activity was done way before 5 am pst, and the Comex Open.
The violence in Venezuela seems to be having the opposite effect on Gold (for now) with the Bolivar pricing Gold at 12,825.95 losing 34.95 Bolivar with Silver’s trade at 148.914 losing 1.198 Bolivar overnight. Argentina’s Peso now has Gold priced at 56,859.45 losing 242.68 Peso’s with Silver losing 6.373 A-Pesos with the price at 660.087. Apparently a coup attempt is not as important as our FOMC data.
The Silver Deliveries for the month of May are on with the early morning count now at 2,224 demands for physical still up on the board. That totals 11,220,000 Troy Ounces with a Volume of 104 posted on the board so far this morning. The Overall Open Interest in Silver continues to lighten up with the count now at 197,060 Overnighters losing another 1,291 obligations during yesterday’s trade. One day these Algos will break. Why? Because they all are based on preset rules made by people. Clif High posted this one sentence in response to the shutdown of people like James Wood on Twitter, but it matters far more (imo) when it comes to the fixed prices of Comex; “All algos operate from a rule base. Step outside the rules & algo breaks. Secret = no rules in (real) life”.
Venezuela Coup? "Live Fire" Exchanged Outside Contested Air Base, Armored Car Plows Into Protesters. The title says it all, however, with the complete distrust of all things media, it seems people are not believing anything anymore. Bolton and Pompeo are vibrating for war (what else is new) and Maduro is claiming a failed coup. We’ll wait to see if the media is faking it again or if there is something else going on. The idea of not allowing a good crisis to go to waste is something we’re all too familiar with, thanks to a trusting government needing to keep people fighting amongst themselves instead of looking at them.
As mentioned above the FOMC data will come out today at 2pm (est) with many thinking the words “unchanged and waiting” will still be the name of the game as the western nations look for better data to come out before starting to reduce the amount of digitized currencies by raising rates. The world markets are still reeling for the sudden FOMC turnaround in rates at the end of last year as the global economic daily data, along with the Baltic Dry Index that is still skidding along the bottom of the barrel, proves things are not going well for the debt based system at all.
No news seems to affect the primary currencies or precious metals, at least the buy side of things. Brexit, Trump’s Win, Maxine Waters over her head as a committee chairperson, MI5 & 6 involved in FusionGPS, nothing moves the markets (for now)! That’s because programmers have created an Algo system of Western Nations Primary Currencies showing no waves or currents, just calms waters and beautiful sounds, nothing but joy! What is going on behind this screen saver is something completely different. All that has to happen from this point forward is “life”. Once that mouse is moved, the screen saver algo stops and reality shocks the viewer.
We think the Algo screen saver is still working, however, life will make the mouse move and we’ll realize how much safer we are than those that believed what they saw, on screen, before the mouse movement. The idea of a single mouse in front of a herd of elephant’s maybe a damn good descriptor for what happened in Venezuela, when their currency collapsed and Silver and Gold rallied millions of percentages over that one year. So hang on tight to the real, keep a positive attitude no matter what, and as always …