Posted on 04/07/2008 9:21:05 AM PDT by Aquamarine
Get Ready for Real Manipulation
By Jon Nadler Apr 7 2008 9:02AM
www.kitco.com
Good Morning,
Gold maintained a resilient tone in Asian trading overnight, oscillating between $910 and $920 as stock markets gained a bit on investor confidence. Support came from a $1 rise in oil to $107 per barrel but further gains were capped by the US dollar's climb to back over 72 on the index (72.23) despite some waning of the level of confidence in its immediate prospects for a significant recovery. More will be known about such prospects following this weekend's G-7 get-together.
New York spot trading opened with only marginal gains, with gold being quoted at $915.60 up $1.90 per ounce as participants continued to attempt test at higher levels on the heels of the dismal employment data last week. However, they were also mindful that speculators once again decreased their long positions in the metal in the trading week ending on April 1st.
For the moment, the stronger greenback and buoyancy in equities are keeping gold under the $925 area. Silver gained 5 cents to $17.79, while platinum rose $20 to $2038 and palladium added $12 to $456.00 per ounce respectively. The prospect of further tests of lower levels amid a recently nascent correction cannot be ruled out in coming sessions, however for now the focus will remain on the retails sales and consumer confidence data in the pipeline later in the week.
And now, for something completely different: The birth of the "BPT." The Bubble Protection Team. If anyone had (valid) doubts that the "Plunge Protection Team" either existed at all, or was noticeable in certain markets, welcome to the new reality of a revamped Fed. This time, for real, whether we like it, or not. The New York Times reports that:
"The plan of Treasury Secretary Paulson to overhaul the financial system includes a crucial proposal: it would officially transform the Federal Reserve into a "market stability regulator" rather than merely a banker's bank. This aspect of the Treasury is a natural step in a historical trend. The Fed is no longer just a regulatory agency presiding over a narrow group of businesses called banks. Rather, its mission increasingly is to maintain macro confidence - confidence that the entire financial system is functioning well as part of the whole economy.".....
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