Maintain The Status Quo
The name of the game is the “maintain the status quo” – first until the Europeans return from August vacations, and second in front of the U.S. elections. Today’s “retail sales” fiasco – following perhaps 20 HORRIBLE, GLOBAL economic reports, was no different than last month’s NFP Employment Report, when unprecedented “seasonal adjustments” turned what should have been a BIG decline into a big increase.
Not only that, the PPI was higher than expected, so on an inflation-adjusted basis, retail sales were even worse.
In the end game, it’s all about the Cartel pushing gold back to its “summer 2012 line in the sand” at $1,600/oz.
Encouragingly, silver is up a few pennies, as it continues to build MASSIVE support in the $27/oz range.
Andrew C. ("Ranting Andy") Hoffman, CFA
Miles Franklin Ltd.