Gold – Boxed in
Bob Hoye
Institutional Advisors
Posted Sep 2, 2010

The rally to $1244 this month corrected 81% of the July decline to $1156 (slightly better than the 72% ‘Cup and Handle’ retracements in Oct ’80 and ‘Feb ’75). It also closed against the 7/8th speedline resistance from the all-time high of $1265. Such speedlines have produced temporary highs in gold nine times since the bottom at $253 in 1999.

by Jim Willie on Thursday, 2 Sep 2010

Many observers to the wild gyrations, deep contortions, extreme measures, and other bizarre activity in the government and banking arenas are suffering from severe confusion. The public is alarmed, even frightened, by the sequence of events, without much benefit of comprehension of what is happening or which clans are in control. The degree of deception hit a peak during the TARP Fund creation and disbursement, done behind private closed doors for the replenishment of sacred preferred stock, that bridge between corporate bonds and stock equity. The deception hit a very high pitch with the financial titan failures, the entire string of them. It has never stopped since. The economic data and promising forecasts (mere marketing group propaganda) featured Green Shoots, Jobless Recovery, and the totally vacant Second Half Recovery that is useful every initial six months to sway the ignorant masses. Just what is happening is difficult to describe succinctly. But the main description reads like an obituary. The most recent and visible distortion is not of price inflation, which has zoomed at 7% annually for a couple years, but rather the Institute of Supply Mgmt. The ISM index has somehow registered a slight increase from July to August, despite almost every single regional index faltering badly. See the careening Philly Fed, from plus 5.1 to minus 7.7 in the latest month. They ignore the weak components and present a distorted aggregate, much like retail sales.

By Chris Vermeulen, Thursday, Sept 2

Wednesday was a big session with better than expected manufacturing surging the market 3%. In this article I will do a quick technical take on the current situation for the SP500 and gold as they are both trading at a key resistance level. also its important to know what type of price action we will get in the next 1-2 days so you can have your profit targets or protective stops in place depending on which side of the market you are currently playing.

By Mogambu Guru

From Bloomberg.com we get the bad news that "Bank of England Governor Mervyn King said inflation is likely to exceed the UK government's upper 3% limit in coming months as higher sales taxes drive gains in consumer prices," which "rose 3.1% in July from a year earlier after climbing 3.2% in June."

Apparently, he has to write a letter about it, probably something along the lines of "Dear British taxpayer, Our stupidity and incompetence have caused prices to rise more than 3% in a year, which means you are all doomed unless we government lowlife halfwits stop being incompetent, especially as regards monetary policy in general and creating far too much new money in particular, which we won't. Terribly sorry, old chap. Respectfully yours, Mervyn."

Exchange Rate Determination Rules

If no one objects to this, then a tacit approval of this policy is being given. If this is the case, then you can be sure that other major nations will follow suit. What of price stability and exchange rates that accurately reflect the Balance of Payments of a nation. To understand the importance of these issues we take you back to the last time you heard the U.S. complain about the undervaluation of the Chinese Yuan. It is perceived by many in government and in both parties that the Chinese are manipulating their currency to gain advantage in international trade and this is making many people angry.

By Clif Droke

When Bert Dohmen talks, smart investors listen.

In 2007 when most investment analysts and economists were downplaying the developing credit market troubles, Bert warned investors that the probability was very high that the troubles would escalate into full-blown crisis and would produce a crash of historic proportions. He chronicled the developing credit crisis in the pages of his newsletter and also published a book in early 2008, Prelude to Meltdown, which provided his insightful views on the emerging crisis in depth. The book will surely go down as a landmark written by a financial visionary who was several steps ahead of his peers.

1. Welcome to the Big Leagues.  I keep telling the gold community that the Chinese people and Chinese corporations should not be confused with the Chinese Gman scum.
2. Stratfor, one of the most respected information services in the world, announced that the head of the Chinese central bank might be missing, and now it’s hitting the mainstream media, although the spin machines are in power mode downplaying the situation.  Imagine Ben Bernanke running away!  That’s the magnitude of the situation!  I told you, repeatedly, that the Chinese central bank/Gman had massive losses on their US dollar and bond positions they bought in a crazed price chase, from the banksters.  Almost nobody listened.  Instead, they told me what a master investor the Chinese Gman was, while I called him a bustout.  Let’s repeat the issue today, in a different way:
3. Knock, knock.  Anybody home?

Gold @ $1.5K?

Now the analysts are starting to pile on.

Ron Paul

This Hill is now reporting that Ron Paul is keen on introducing legislation that would force an audit of Fort Knox.