Euro-Dollar Pair To Dive

Written by Jamie Saettele, Currency Analyst: It is still possible that the EURUSD challenges congestion near 1.4452 before the pair reverses and drops to a new low (below 1.4330).  However, the EURUSD may drop below 1.4330 without first challenging 1.4452 and complete wave C (and larger wave 4) of the A-B-C decline from 1.4967.  A potential terminus for the decline is where wave C = wave A at 1.4309.  The next 5 to 6 weeks should see larger wave 5 exceed 1.5000.

Higher gold prices need of the hour to boost recycling in the Middle East

12/16/2007 07:32 PM | By Naushad K. Cherrayil http://archive.gulfnews.com/articles/07/12/16/10175139.html Dubai: Gold prices will need to return to levels close to $850 to encourage a further surge in gold recycling in the Middle East, GFMS's latest report said. "With gold pushing through $800 in early November, this sharp rise was expected to have provided the impetus for a hood of recycled gold from Saudi Arabia, the world's largest supplier of scrap last year. "However, this has not been the case, with scrap fows from the Kingdom surprisingly weak in the second half of this year," said Cameron Alexander, an analyst at GFMS. Year ahead Looking ahead to the next year, he said it is unlikely that Saudi scrap gold volumes will return to 2006 levels unless a higher gold price is achieved. The resultant slump in jewellery consumption would likely encourage a portion of retailers to take advantage of record prices and liquidate their holdings. "Consider that average scrap volumes were over 30 tones per quarter in 2003 globally but, so far this year they have fallen to under 20 tones on average," Alexander said. Similarly in the Middle East, the reaction to the rise in the metal prices has been controlled, with scrap supply supported by the distribution chain unloading slow moving inventory rather than individuals of loading gold assets, as was the case for much of 2006. "Several dealers in Saudi Arabia involved in the scrap market said they were perplexed at the lower volumes of scrap currently being returned to local gold souks in spite of a 27-year high for the gold price," he said. Trend: Dubai scenario Demand for jewellery in Dubai has been modest with consumers buying solidly on dips in prices. But right now they do not appear selling, or exchanging jewellery, with the expectation of higher prices on the horizon, GFMS's report said. The most simple explanation of this appears to be that, as expectations of higher (and ever higher) prices have taken hold, consumers have reduced the amount of old jewellery they are willing to sell back. Report says the rise in the gold price, even in euro terms, obviously features but its direct importance should not be overstated.

Dumb Money Dumps Gold

Alex Roslin at cotstimer says:

Turns out the "dumb money" small traders in gold derivatives have thrown in the towel. The latest data shows their net long position falling to a bearish extreme as a percentage of the total open interest in gold futures and options.

What does that mean in layperson's terms? The folks who tend to be positioned the wrong way in the markets believe gold has topped, and they're selling it. That means my system based on trading opposite to the small traders in gold has just flashed a renewed bullish signal for Canadian Gold iUnits (symbol XGD). (See the table below for more details.) Personal disclosure: I've been long XGD since this setup flipped to bullish back in May. I found in my research on the past COTs data that the best way to trade XGD was to fade the gold small traders.

However, not all markets work the same. My research also found it was best to trade on the same side as the "smart money" gold commercial traders—these would be the gold miners—for bullion itself as well as the HUI Gold Bugs Index and USERX U.S. Gold Fund. That's just the way this fascinating data works.

And these three latter setups flipped to bearish in the Sept. 25 COTs report due to extreme pessimism on the part of the commercial traders. Since September, the commercials have steadily reduced their large net short position to the point where my gold and HUI setups have just gone to neutral (zero) for the first time in nearly two months. Of course, the commercials are still far from actually getting to the point where they'd flip my setups to bullish.

In silver, the "dumb money" small traders have bumped up their net long position a fair amount since the previous COTs report. Now, they're just slightly negative about silver's prospects compared to the historic data. My silver signal remains solidly in the bullish column, where it's been since July. (Disclosure: I've been long SLV iShares Silver since that signal started, too.)

The action in copper since September has been quite depressing if you happened to be a bull. Since my copper setup gave three renewed bearish signals starting in the Sept. 25 COTs report, copper is down about 15 percent. Yikes. With the latest COTs report, my copper setup still has a bearish tilt because the "dumb money" large speculators—the big investment firms and hedge funds—are still fairly bullish by historic standards. This, despite the dramatic selloff! It makes you wonder how these folks stay in business. Oh yeah, that's right. Commissions, management fees, tax loopholes, offshore accounts. Almost forgot.

And what of the beleaguered U.S. buck? Do the COTs give any hope for the poor greenback, so crushed and unloved? No, sorry, they don't. In fact, the "smart money" commercials in U.S. dollar index futures have again reduced their net long position—their seventh straight such move. My dollar setup, already on a bearish signal since way back in Oct. 2006—when the dollar's latest downtrend started—now has a decidedly bearish tilt.

For more details and signals from my setups for equities, energy, the Treasuries, currencies and agriculture, visit my free blog COTsTimer.Blogspot.com. Good luck this week.

Atlantic exports: more than just gold

The eye on gold would see that the amount of dollars yielded from gold sales would weaken dollar even more, but the dollar certificates bearing itnerest traded at a slightly higher price of $1.021 to a dollar bearing the same lucrative 3.75%.

Atlantic exports

According to the Attland Council of Commerce:

In the Industrial sector, many of these technologies turned out to have contributed to impressive export volume in the past 5767 year.

• optronic computers, components, displays, marquees, intelligent cameras, and optronic-electronic interfaces
• hybrid automobiles, parallel, serial, and other variations
• high-performance super-digitized automotive engines
• synthetic wood
• high-performance turbine engines
• floating refineries
• modular nuclear reactors
• diamonds, gems
• crystal-impregnated plastics
• specialty luxury jewelry and watches
  
• medical sensing instrumentation
• oil development equipment
  

In the agriculture sector:

• the bread tree (not to be confused with the breadfruit tree) products -the leaf paste, the fruit and its pulp, the petals, the bark and other edible and non-edible harvest derivatives
• the chocolate carob products- the pure chocolate that is 99.99% identical to chocolate that is free from any other processing stages
• new llama-alpaca breed wools
• spider and worm silks
• new variants of vanilla

In the service sector, there is:

• the gold banking services, led by the Atlantic Royal Bank
• the wholesale deposit insurance, led by Koborg Capital Security, an ARB affiliate

and that returns us to The Eye on the Gold topic

Gold rules on Atlantic

Spot gold 785.40 rising
Spot silver 14.4 rising
Spot Platinum 1446.00 and rising.

The Konigsborg Bank, however, upped its price for gold:

Gold sale price 836.55, buy price 811.25
Silver remained at 15.55
Platinum was kept below 1477.15

The worldwide price of gold fell, mostly due to an increase of gold sales to Attland, and the Atlantic Royal Bank, particularly. The sheer volume of redeemed dollars supported the dollar's weakness, except when traded against yen.

The National treasury spokesman reports that the inflow of gold is enough that the National Government has no need to request more gold sales to the banks.

Intro and Digest of the Royal Affairs

CHIEF JUSTICE AND ADMINISTRATIVE AGENDA

1.
The Royal Estate reports that the Great National Council has officially recognized that Queen Iya, having completed her jurisprudential career requirements, has achieved required professional qualification and education to attain the title of the complete royal. The title assigns the queen the rights and office of the Chief Justice, which is the same as Justice Supreme, appointed over the entire Supreme Court justices, its decisions, and the rights and the office to represent the State and the Nation.

Having the master’s degrees with honors in Astrophysics and Computer Science, has given Queen Iya the title and the office to head the National Science Collegium, the UCICS advisory board, and the National Communication Collegium.

2.
One of the very first divisions handed by Queen Iya is the ruling on the Temple Goblet.

The goblet was found in the basement of the Royal Museum Depository, which is on the grounds of the Ingeborg Fortress. The goblet was stored among the artifacts of the Medieval Christian exhibit. A re-examination during restoration work has revealed an obscured writing within the metalwork of the juncture of the goblet’s cup with its stem. Further analysis revealed that the stem was welded onto the goblet in the 9 the century CE, while the goblet has been found to have been made in the first century BCE. The manufacture analysis and the writing on the goblet have led to the conclusion that the goblet has been on of the Jerusalem Temple’s service vessels.

Several religious and academic institutions have joined in a class action suit to request an unrestricted scientific access to the goblet, and several Christian institutions headed by an organization associated with Vatican have sued to reclaim the goblet as their property.

The Supreme Court of the Nations has ruled that the goblet is to remain in the possession of the Royal Museum, and any access to the goblet, as well as any other part of the exhibit is to be managed by the most qualified staff from the Royal Museum or the National Trophy Museum authorities. The parties that brought the class action suit have appealed the Supreme Court's decision, resulting in the two cases ascending automatically to the Supreme Court’s Appeals Council. The Council has ruled in favor of the Royal Museum as pertaining to the access to the goblet or any of the exhibit, and waived its right to review the cases pertaining to the ownership, sending the cases to the office of Queen Iya.

Queen Iya has ruled the cases in favor of the National Trophy Museum Authority.

The Non-Partisan Law

Queen Iya has upheld the law prohibiting any political parties, pressure groups, lobbies or organizations that are organized to influence in any manner political, executive, jurisprudential or legislative process.

The death verdict for 250 rioters, upheld.

Upheld, the Violent and Subversive Organizations Act, and the expulsion order of minorities and organizations affected by the act

Upheld the enforcement of the VSO Act

The enforcement included the eviction of religious organizations affected by the Violent and Subversive Organizations Act, and the order for demolition of the buildings of the organizations (mosques, churches, monasteries). As a binding opinion, the queen ruled that the Catholic church denominations, church organizations engaged in evangelical and missionary activities anywhere in the world, Moslem organizations and Mosque-based communities, monasteries, white power organizations, and any other organizations whose activities have been found by the National Executive or Jurisprudential authorities as to be subversive, to forment public disorder, to transfer moneys in a surreptious manner, are barred from the territories subject to the National government’s administration, and any individuals who are representatives or principals of such organizations may stand trial retroactively for crimes committed by its members, and may be subject to expulsion from Heursland.

The Upholding of the Gradnea Act

The Act allows a married man that is found by a court as qualified to marry more women. Drawing some criticism that found her ruling lenient if not liberal, the Queen also upheld the right of a man to marry a legal resident, and even a non-resident foreign national. The Act implicitly allows import of brides from impoverished countries, but does stress that the children of such marriages are not eligible for national citizenship registry.

Supreme Courts Opinion, specific request for, regarding the VSO authority:

Organizations known as Freemasons, Masons, Amish, Mennonites and the communities related thereto, Amish and the communities related thereto, and Dukhobors, are all confirmed as conforming with the laws of the VSO act.

The SCS discloses Google Searches

The SCS publicizes the lectures of the US leftist professors.

The SCS publicizes the Iran-Russia financial operations.

BUSINESS AFFAIRS

Financial Growth

(decisions to fuse National Mail Service with the Kingsborg Bank, resulting in the National Mail and Bank)

(Splitting the Kingsborg Bank into Home Insured Bank and an International Deposit Bank, with the minimal deposit of $100,000, and subsequently $1 million)

(Reorganizing the International Deposit Bank into Capital Fund; starting two distinct services: Deposit Securities, and International Securities)

(The Capital Fund grows and together with the National Treasury obtains unlimited trust from the US Reserve to purchase on request any amount of US currency for circulation in Heursland)

(The Capital Fund is given the option to print the National currency, which may serve to partially replace the US Dollar as the national fiat currency)

The Atlantic Royal Bank rates for gold, platinum and silver

The Microsoft Suit and the Routing Countersuit

PERSONAL INITIATIVES

The CHF:

Queen Iya has created The Central Help Foundation, funded by interest earned by several financial deposits to the National Treasury Fund Deposit system.

The National Defense Effort:

Queen Iya has purchased the nuclear-propelled battleship Kingsburg, and several other capital warships (another battleship and several battle cruisers) for the National Navy, and has paid for the construction of smaller warships and submarines. The ships purchased remain her property, while being staffed and operated by the National Navy.

The First Cruise Around The World

In Fall 2003, the Queen Iya had set boarded the battleship Kingsburg, accompanied by a fossil-fueled battleship, 1 aircraft carrier, 1 land attack helicopter carrier, 2-5 cruisers, 10 destroyers, and 5-10 frigates.

The Queen’s escort had approached the shores of Portugal and Spain, entered the Mediterranean, approached the shores of Sicily, Greece, Crete and stood offshore from Tel Aviv, Israel, where Queen Iya had taken a ride in a state convoy by the National embassy staff, National Marine battalions, the Royal Guard Forces, and Israeli security forces. She had visited Jerusalem’s Western Wall, had spoken with leading religious authorities, and upon returning to Tel Aviv, had visited with leading representatives of the Diamond Exchange to discuss Royal diamonds and gems she had brought along, as well as diamonds and gems from local collections. The land visit lasted from morning to early evening.

From Israel her ship had set course for the Suez Canal, which she transited, sailed by the island of Sokotra, sailed by the coast of Arabia, entered the Persian Gulf, approaching the coast of Iraq, where the both battleships carried out gunnery training by firing barrages of live rounds at the designated locations on the Iraqi shore. The live fire drew some world criticism. After a daylight visit off Iraqi shores, she had set course to exit the Persian Gulf, had sailed to the shores of India, approached the shores of Bombay, and having received the Indian Navy’s official salute, sailed along the shore south and around Sri Lanka, to Malacca Straits, sailed past Singapore, set course for the Sorong National Military installations in Indonesia, sailing past and into the Pacific Ocean, passing Tahiti, the Easter Island, through the Magellan Straits passing iceberg zone into the Atlantic Ocean, sailing within the sight of Paraguay-Brazil coasts, and directly north homeward to dock at the Ingeborg Fortress port.

The Cosntruction of The Nordurby

The Second Cruise Around The World

The Construction of the High Orbit Astrolab

The Construction of the plasma-propelled spaceplane