Still, no significant additions were reported in gold-oriented ETF balances during the month, and that fact has some market watchers remaining on alert. More than 109 tonnes in such balances have been lost since the peak tonnage that was recorded last June amid the EU’s debt woes. That said, Friday night’s Elliott Wave-based short-term analysis indicated that there might be some scope for gold to now rise to somewhere between $1,529.00 to $1,547.00 unless the late January low near $1,308.00 is soon taken out, undermining that potential and tilting the trend back towards lower value zones. Gold’s 200-day moving average is currently near $1,303.00 per ounce.
As of this writing, spot gold oscillated between the $1,406 and $1,417 posts – but mainly around the $1,415 level that it also opened at. Silver advanced 56 cents to reach $33.96. Platinum dropped $2 to the $1,803 mark while palladium was able to rise $9 to the $798.00 per ounce bid quote. No change was reported in rhodium this morning ($2,380.00 on the bid-side). The metals continued to look for guidance to come from crude oil and the dollar, while also taking note of the rising chorus of hawkish central banker talk.
Bloomberg reported that “U.S. automobile sales in February may approach the fastest pace since the government’s “cash for clunkers” program as rising consumer confidence spurs purchases.” The sales data for U.S. light-duty vehicle deliveries will be available tomorrow morning, but the consensus among analysts is that America is on track to report an annualized sales run level of roughly 12.4 million vehicles (it ran at 12.6 million in January and in December). The “C-4-C” program boosted vehicle sales in the US up to an annualized 14.2 million level. Keep them’ big (and little) wheels rollin’…
Someone else who sees America’s wheels (and not just the automotive ones) rollin’ along quite nicely, is one Mr. Warren Buffett. Yes, the man who bought oodles of silver once upon a time (and then sold it all at a nice profit) is now busy reassuring today’s panicking small investor that Armageddon is not quite at hand, as some would try to declare.
Mr. Buffett wrote in his firm’s annual report to shareholders that “the prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and effective. Now, as in 1776, 1861, 1932, and 1941, America’s best days lie ahead.”
If there was one note of negativity in Mr. Buffett’s writing, well, it was reserved for a by-now-familiar subject of criticism and unmasking in these columns: the world of hedge funds – a world that in Mr. Buffett’s words has witnessed some “terrible behavior.”
Jon Nadler Senior Analyst
Kitco Metals Inc. North America