Who would have thought? US dollar & Dow stable, volatility subsiding, and gold & silver down to start the week. The “market” auto-pilot was working just fine last night and into the morning, but holding a mainstream view that “everything is awesome” would be a serious mistake this week…

First things first – when it doubt, smash:



Last time I checked, you can pick up a bunch more ounces at $17.75 than you can at $18.25!

One look at the economic calendar one thing should immediately stick out like a sore thumb:



No Fed speeches at all this week. This is common the week before FOMC day. Next week Janet Yellen will hold a “press conference” in conjunction with the rate hike decision or indecision, so this week, there is nothing to for the market to take the wrong way. It’s not like the Fed, ESF and market manipulators won’t have their hands full behind the scenes anyway. 

CME Group rate hike probability is showing the Fed will hold, with any variation to the “rate cut” side:



This is not to say there is not a ton of fundamental news brewing in the background. North Korea is still at it, Russia is conducting war games, the United States is dealing with a one-two hurricane punch, and Syria is front and center again. Not to our surprise, none of this is good for markets, but sure enough, one look at the charts will show that apparently it all is.

In fact, uncertainty seems to be quelled. The “fear” barometer, the VIX, is subsiding, and the dollar is slightly up going into the week:



The Dow is also suspended in near perfect unch form:



Crude is breaking-down:



Gold is down $20 from Friday (30 from the highs after the Monday morning beat-down):



And sure enough, Silver is on sale today:



In fact, it is almost eerie just how pleased the bankers would be of their set-up for the week. And therein lies the problem. Just like last week we said that gold and silver were not likely going to bust out of the $1350 and $18 range, this week may find the central banks on the complacent side. If there is a break-out, it will not be to our surprise, but we can rest assured knowing the Fed will be doing everything it can to pressure gold and silver prices down in attempts to have some slack going into next week.

We still watch our levels that are unchanged. Gold is having a hard time getting through $1350, which is full of resistance just about anywhere from $1310 on:


And silver is stuck with resistance at $18.25 and $18.50, but if that weren’t bad enough, now it’s fighting just to maintain $18. Regardless, it won’t be an easy week unless we get a commanding break-out in silver:




  1. “Round and round she goes, and where she stops….nobody knows.”      Buying opportunity?  Selling opportunity?   Who gives a F**K any more?   Martin Armstrong doesn’t know.  Harry Dent doesn’t know.  Bozo the clown doesn’t know.   How are we supposed to know?   Just sour grapes on my part that I bought this crap when I did.  Serves me right.   Just hope I live long enough to break even.

    • “Just sour grapes on my part that I bought this crap when I did.  Serves me right.” 


      Yep, I think Paco is right, why not just sell your *’CRAP’ to some Stacker who will appreciate it and maybe move along to your next unthought-out investment and leave the *‘CRAP’ to us lol? _JLG.  


      *’CRAP’ = a @BoomerBusted  term for Real Money. 

  2. Though the link of gold price to the strength of the Yen was disrupted somewhat the past couple weeks as golds rise was a bit quicker than usual to the Yen strength at that time, the algos are right on que once again doing their job for their masters as the Yen loses strength to the dollar down goes gold. We really need a complete decoupling of the gold and Yen play. It is utterly ridiculous and has been their tool since 2013 when they smashed gold.

    • @sd

      Very true!

      I don’t buy PMs for the short term though, so I am good. I keep a running tally of PM price over the years, and my buy in points are rather cheap: 15.50s in silver  or lower and 1150 or lower in gold.

      I calculate a rate of return on the lowest price of Ag&Au, and from those lows, I estimate a current and future price.

      Staying within those values keeps my DCA low. I don’t fret if I cant buy today or tomorrow, but I know there is always some fake market panic, and they will club PMs like baby seals, especially if the Fed hikes again, we could see 1150s or so gold and 15s silver.

  3. First clue:  “Fundamentals” —- ack/spit/ug/choke/caugh/ack-ack…..

    How the frig can someone use that word in conjunction with “the market” when all we have is flim-flam and smoke ‘n mirrors in the first place… We don’t have no stink’n market…all we got is the scraps on the floor after the “stabilization actions” is finished with it’s “set dressing”….

    Crap on a stick, I say…

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