Gold Dumped (pre-CPI) and Pumped (post-CPI)

INTRA-DAY NEWSLETTER ~ July 22 2014

Gold Dumped (Pre-CPI) And Pumped (Post-CPI)
Submitted by Tyler Durden on 07/22/2014 - 08:49

9 minutes before CPI data hit, gold futures were slammed lower on notable volume ($390 million). Then as CPI hit and "noise" was evidently not going away, gold prices surged over $12 to $1316 obn very heavy volume... Gold is moving inversely with the USD (which is flying around) as stock rally (?) and longer-term bonds rally/flatten.

CPI Remains Stubbornly High as Yellen's "Noise" Won't Go Away
Submitted by Tyler Durden on 07/22/2014 - 08:37

Consumer Price Inflation was 2.1% in June (as expected) remaining above the Fed's mandate levels and worryingly for all those who see the Fed as omniscient... refusing to go "noisily" down. Core CPI fell very modestly to 1.9% year-over-year but the jump in gasoline prices accounted for two-thirds of the overall rise in June CPI (seems like the Fed needs to print some more world peace to brings prices down). How many months of 'high' inflation does it take before Yellen admits it is not 'noise'?


Europe Agrees To Disagree Over New Russian Sanctions
Submitted by Tyler Durden on 07/22/2014 - 11:06

As usual, Europe is talking out of both sides of its mouth (or other orifices). On the one hand, we are told:
• EU foreign ministers failed to agree new sanctions against Russia at a Brussels meeting

And on the other hand:
• Dutch minister says EU imposing new sanctions on officials over Russia
So - which is it Europe?

Chinese Premier Li Admits Central Planning May Not Be Optimal
Submitted by Tyler Durden on 07/22/2014 - 08:18

In an odd admission of the possible fallibility of a centrally-planned economy, none other than Chinese Premier Li recently noted, "we should never assume that we few at the top have more insight or power but should try to mobilize the intelligence and creativity of the many thousands of our people so as to create unrivaled value." Perhaps the Federal Reserve would do well to listen. However, Li did not excuse himself from the need to spin how well things were going. On the heels of our 11 awkward Chinese fact charts, Li explains "the Chinese market is booming, the economy strong [sic]. Enterprises are the mainstay of the market." However, as Diapason Commodities' Sean Corrigan, when trying to confirm this 'fact', "discrepancies abound."

Putin Speaks: Will Respond "Adequately" To Ongoing NATO Buildup; "Wont Tighten Screws" In Response To Threats
Submitted by Tyler Durden on 07/22/2014 - 08:01

Perhaps there were some concerns that Putin, following the Russian Security Council Meeting today, may lash out at the west with escalating retaliatory sanctions against the west of his own. He did not which may explain why futures just saw an algo-driven buying wave moments ago. Still, what he did say is hardly justification to declare an "all clear" for risk as Putin being Putin, he merely reiterated for the nth time the Russian party line: Ukraine should facilitate a cease fire, Russia won't "blink" no matter how intense western sanctions are, and Russia will retaliate in kind to any ongoing NATO build up on its borders. Oh, and Crimea is now Russia's to do as it sees fit.

Gold Chart
Gold is all over the map today as we moved from 1302 to 1316 and now back at 1306 on the pre and post CPI report. The key is whether we hold 1302. If we don’t on the close then the potential for lower prices later this week is still in play. Resistance is 1312-1316 and support 1302-1305.




Cycles
The ideal day for a cycle low is July 27th (plus or minus 72 hours). At the moment there are two channels---an up channel and a sideways to down channel. We remain in the down channel at the moment. It takes a push into the up channel for intermediate term bullish.



Silver
Silver is trying to hold on to the blue trend line near 20.90-20.95 and if it breaks then the next support is just under 20.50. Resistance is 21.16-21.33