marceau

Idiotic. Looks at one element of the market in a totally blinkered fashion and disregards the impact of anything else, as if Indian demand is the sole driver of the gold price. And I've seen nothing from any of the presidential candidates to suggest any change in fiscal policy. Not a shred of evidence, and I follow such things very closely. The author is probably a jeweler suffering from a little too much wishful thinking.

The DOW has priced in a large rate cut today by the look of things. If they don't get what they want it could be carnage. I'm feeling fairly (maybe overly) tense about this one. So many people are looking for direction from today's rate announcement that the moves (either way) could be huge. Rubber underpants ON.

If the market doesn't get the right amount of rate cut medicine it will go back down just as fast.

RGLD down another 60 cents. If this goes on much longer Bernanke will have to bail ME out.

My god, its moved down $4. I guess I'd better quit and get into the dollar right now.

No smackdown today. Gold steady at around $1010. Wouldn't surprise me to see it rise all the way up to the FOMC announcement. And then? Well, who knows?

I'm sorry sbn, I just can't do it. If I have to listen to that house ramping hippo I'll end up smashing my radio. She's also a 'hippo'-crit if she's now dishing out abuse to those who followed her vacuous advice to buy at all costs. I'd imagine she'll be forced into Salman Rushdie-style hiding when the crash hits in earnest. Hoards of housing/BTL suckers will be roaming the streets in search of her, hoping to enact their own form of fatwa as revenge for her years of propaganda.

Wow, is that really from the Mail? If so, one of the best things I've ever seen them do. Puts the point across so simply and clearly even a brainless cretin could understand. The mail really does know its readership, then.

Wow, you must be over the moon with your profits so far. Your timing there was outstanding. Just think, pretty much everyone who STRd at HPC could have done the same, but a lot of them were herded away from it by the likes of Charlie The Tramp and Realist Bear. Sad really.

Silver, as always, is all about risk to reward. I'd say the balance today still favours reward, as the froth was well and truly sliced off in yesterday's brutal smackdown. Don't get me wrong about the Fed, I think it will be a full 1 percent cut. I'm just trying to stop anyone jumping too heavily into a situation which is on more of a knife edge than most think. Buy and hold - yes, always. Buy on leverage - not now.

Speaking of the Fed, what time's the chief chimp speaking this afternoon? Edit: Found out myself, should be around 1815 UK time today.

Spot on. If the Fed gives even the merest signal that it won't continue with its inflationary policies, twitchy gold longs will sell and the gold shorts will add. The result, pretty obviously, is then a sell off. How far? Not sure. But given gold's recent run up it could be a biggie. Of course there is no way the fed will stop the printing presses, but you should be ready for them to do anything in their power to diguise that fact in order to preserve the dollar. A good opportunity to do this would be to cut by only 50bps (only, lol), which could produce a dollar rally and commodity sell off based on the expectations of the market not being met. Managing expectation is all part of the game, I'm sure the Fed are pretty good at it. If a sell off did happen gold would bounce back within months. But a lot of optimistic and overleveraged longs would get knocked out of the market, maybe never to return. Don't be one of them. Don't put too much on a Fed megaboost this afternoon.

Yeah, you've gotta love him for all of the easy buying opportunities he keeps contributing to. The thing I find funniest about him is his pretence at being a 'long term' gold bull who is only shorting due a supposedly balanced viewpoint of the fundamentals. As soon as the gold thread disappeared from HPC he really started to show his true colours, a gold hating bear with no clue about the underlying reason for the bull market. He will continue to lose. In fact, I'm pretty certain that he has already lost a large amount of money in some of the more violent upspikes we've seen over the past few months.

No. The Chinese are plagued by inflation as well. Admittedly they officially recognise it, unlike the western economies, but that doesn't make it any less potent at destroying paper wealth. Any gains made by the Remnibi will pale into insignificance when compared to the damage done by inflation and therefore into insignificance compared to the comparative performance of gold. Also, what makes you think the Chinese will pursue a strong currency policy? When the western economies finally collude in lowering interest rates and monetize their markets, the Chinese will react to prevent over strengthening of their currency, or face a devastating loss of export revenue. I can see this happening to all of the other commodity currencies (ie the Real, Loonie etc). They are so dependant on exports that they will have little choice. The only currency that may buck the trend in a large enough manner is the Yen. But given the fact that Japanese economics is held firmly under the thumb of the US, I would bet that this would be despite their Central Bank's best efforts.

Looks like a London sell-off yet again. Will be interesting to see how far they can push it. Edit: Not very far at all by the look of things.

We need to be careful today. If the Fed's cut isn't as big as the market expects then the plug will get pulled on gold very quickly indeed. Of course, long term it will be back, but not for many months. I really can't see the Fed disappointing us somehow, though. Bernanke is desperate to avoid condemnation in the history books for failing to increase liquidity quickly enough to avoid a depression. I'm sure he'll cut big today.

Counter-intuitive is exactly it. I don't mind admitting that the movement of commodities yesterday completely stunned me. What kind of twisted market can produce a commodity sell-off and a DOW rise on the same day under current market conditions is beyond me. Everything is linked to deflation or inflation prospects at the moment, there is no growth story without the inflation the Fed offers. If the markets are thinking 'recession for sure' then logically the DOW should have fallen along with commodities. If they were thinking 'the Fed will save us' then commodities should have risen along with the DOW. I simply can't understand the mindset of the western markets. I can only think that their arrogance prevents them from seeing the true picture. If they can't or won't change, then it won't be long before their relevance and power on the global stage fades. I see no shortage of realism coming from the east and, ultimately, I'm sure their more grounded assesment of the situation will leave them far wealthier than our blinkered investment communities. Anyway, time to fit the rubber underpants for another volatile day.

True, for today at least. But how the DOW ended up is quite a mystery to me to be honest, seems to run counter the thinking that sold everything else off.

What does everyone think for the rate cut tomorrow? My guess is a big fat juicy 100 basis points. Anything else and the DOW gets fried.

Now THAT'S a fight I'd love to see.

Gold vs the Fed is like Ali vs Foreman. Gold is stood there soaking up blow after blow without weakening. The Fed is getting tired and can't keep up the pummeling for much longer. Pretty soon, it's rope-a-dope time.

The thing that annoys me the most about today is that the exact opposite of what should have occurred actually occurred. The DOW should have tanked into oblivion on the news and commodities should have skyrocketed. Instead we get almost the complete opposite. The fact that most of the US investment world still seems to shun gold I find incredibly positive. After all, if it has risen this far without their support, how far will it go when they finally come to their senses and get on board?

Wow, they've really pulled a number on us today. Everything got the full smackdown treatment at just the moment it was least expected. Well, that's the markets for you. Commodity fear is back with a vengeance. But let's not lose perspective, the retrace has only wiped out a few days of gains. Every time the closet bears like Nadler get a day like today they proclaim a massive correction in the offing. And everytime they have done this since the New Year they have had to eat their words. I don't see why today is any different. If anything, the fundamental picture is even stronger following the BS bailout.

They can see the Fed's future intentions in the Bear Stearns move and the continual rate cuts and liquidity injections which come with it. What this has told the market is 'party on, the Fed will either bail you out or inflate away your debts'. Criminal really, but it will make precious metals more valuable than ever. So I'm alright Jack.

Is it me, or is gold making $2 -$3 ticks up and down at the moment? A real battle by the look of things.