Failed Blythe Raid in the early AM on Silver

Failed Blythe Raid in the early AM on Silver

Well she tried on the China rate raise news, but got SMOKED. Expect some volatility today as the powers to be scratch their heads and try and figure out a way to quell this buying frenzy.
On a different note, Gold Bullion considered as collateral by international clearing house – LCH.Clearnet-how bout them apples?

 

Gold Break Out Continues As 50 DMA Gap Is Close To Being Filled

Submitted by Tyler Durden on 02/08/2011 10:14 -0500

Following a strong break out this morning, gold continues its push higher and is now just $8 away from the critical 50 DMA of $1374, which had served as a major support level up until a recent round of margin collateral requirements and the CFTC's grandfathering clause spooked the weak hands in gold in mid-January. Should the 50 DMA be passed (and with the 30 DMA already in the rear-view mirror), the technicals will promptly become a tailwind again, and allow smooth sailing to resume all the way to the all time nominal highs in the $1430s. 

 

 

 

Morning Gold Fixing: Gold Bullion Considered As Collateral By International Clearing House – LCH.Clearnet

Submitted by Tyler Durden on 02/08/2011 08:38 -0500

A further sign of how gold bullion is increasingly seen as not only a safe haven asset and a currency but also a financial asset, is news that the LCH.Clearnet is giving further consideration to a plan to accept gold bullion as collateral. They may accept gold bullion as collateral against margin positions on a range of asset classes and derivatives in the international financial markets. LCH.Clearnet have been considering allowing gold as collateral since October 2009 and the move by the CME and JP Morgan to allow physical gold as collateral may have made their plans in this regard more concrete. "We’re looking at it closely,” David Farrar, LCH.Clearnet Director of Commodities told CNBC (see News). “It’s something that, subject to regulatory approval, we’d look to introduce later this year."... Keynes’s ‘barbaric relic’ is becoming less barbaric by the day. However, the man in the street remains completely unaware of this trend as it continues to be ignored by mainstream media and its implications not realised. 

 

 

 

Egyptian Central Bank Intervenes To Prevent FX Rout

 

China Raises Benchmark Deposit, Lending Rate By 0.25 bps As January Inflation Hits 6%

 

Richmond Fed's Lacker Says FOMC Should "Seriously" Re-Evaluate QE2

Submitted by Tyler Durden on 02/08/2011 08:53 -0500

Yesterday Richard Fisher, now it is Jeffrey Lacker's turn to speak out against QE2 and inflation concerns. Just more jawboning or are we actually going to see more dissenting votes finally? Keep in mind Lacker is an alternate member on the FOMC board in year 2011 and is not a voting member. From remarks presented by Lacker to the University of Delaware. "The Committee recognized that the provision of further monetary stimulus at this point in the business cycle is not without risks, and therefore committed to regularly review the pace and overall size of the asset-purchase program in light of incoming information and adjust the program as needed. The distinct improvement in the economic outlook since the program was initiated suggests taking that re-evaluation quite seriously. That re-evaluation will be challenging, because inflation is capable of accelerating, even if the level of economic activity has not yet returned to pre-recession trend."