CL Redux

GOLd 1.5% , Silver 4.5% and copper up ...


“The recent dollar strength seems to have just come to an end for now,” Denham said. “Dollar bears will be thinking this could be a good opportunity to get short the dollar again, particularly if the debt ceiling issues start to boil over.”

Copper futures were also gaining ground Wednesday, with July copper HGN11 +2.78% up 10 cents, or 2.4%, to $4.10 a pound.

Gold for June delivery GCM11 +1.26% rose $15.20, or 1%, to $1,494.60 an ounce on the Comex division of the New York Mercantile Exchange.



Silver for July delivery SIN11 +5.43% rallied $1.44, or 4.3%, to $34.93 an ounce. In the previous session, it dropped to its lowest close since Feb. 25.

Simon Denham, head of Capital Spreads, said the metals were benefitting from weakness in the dollar, though he gave little credit to the chance of a sustained rally for silver
 
http://online.wsj.com/article/BT-CO-20110518-708470.html


"The oil-dollar-gold relationship has always been paramount in the overall market," said Frank McGhee, head precious metals dealer at Integrated Brokerage Services. "If oil stays under pressure we might see gold and silver turn lower," he added.

Gold also trended higher as traders who bet on lower prices, or sold short, pared those positions ahead of the FOMC minutes. Gold traders look to the Federal Reserve's policy-setting committee's minutes for clues about the pace and format the bank will follow when it moves to tighten its monetary policy. A slower-paced exit will be a boon for gold, which had benefited from higher inflation expectations sparked by the bank's easy money stance.

"We're looking for any signs of how this liquidity will be taken off the table," said Dave Meger, director of metals trading at Vision Financial Markets.

"You're seeing a bit of short covering ahead of the FOMC minutes in the afternoon," he added. Traders must purchase futures to cancel out a short sale, or bet on lower prices.

Gold has recovered from downbeat news that Soros Fund Management sold the bulk of its gold investments. The hedge fund was one of several large funds that reported selling large stakes in the SPDR Gold Trust (GLD) in their securities filings.

"Those trades had long been regarded as a benchmark for the commodity trade itself," Tom Pawlicki, precious metals analyst at MF Global, wrote in a note to clients. "Many pundits have begun to believe that the peak in the commodity trade has been formed."

Elsewhere, the Hong Kong Mercantile Exchange launched trading U.S. dollar-denominated gold futures on its electronic platform Wednesday. The exchange offers a 32-troy ounce gold contract for physical delivery in Hong Kong, traded between 8 a.m. and 11 p.m. Hong Kong time, which will overlap gold markets in Europe and the U.S.
 
You just can't help love the oil, and it's jackass sibling aka stock market. They bitch that high oil price is bad for the consumers but they now see that low oil price is bad for the stock market. Well, who the hell cares about the consumers other than the rotten populist politicians. Screw 'em.

Alright boyz, it's time for $200! Go long oil! Carpe Diem!!

FYI: I'm told Jackass Hotline is now officially open for consultation :D

1-800-JACKASS

Wall Street Gains As Oil Rebounds - Reuters

U.S. stocks edged higher on Wednesday, boosted by energy shares as oil prices rebounded...
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