An 8.4% plunge in new homes sales adding to the speculation especially after an article in the Wall Street Journal that suggested that the Federal Reserve is unhappy with the way the economy is slowing and is getting ready to act. The gold and silver were positively giddy on those hopes rallying all day but oil had to contend with the weekly inventory report that on the surface looked pretty darn bearish.
Crude rose by 2.7 million barrels but that was just a blip as compared to the whopping 4.1 million build in gasoline supply. It seems that finally all that gas supply that seemed to disappear in recent weeks finally showed up. We saw a surge in refinery runs and imports as the aftermath of the tropical storm is finally behind us.
Yet after the petroleum markets fell it was hard to ignore the stimulating move in precious metals and oil rebounded. Yweet overnight at first oil pulled back as global concerns and the fact that anticipating that Ben Bernanke would act has not really been a profitable trade.
Yet according to Dow Jones oOil prices turned positive Thursday, after encouraging statements from European Central Bank President Mario Draghi helped boost the euro, prompting oil to reverse earlier losses. They said the market got a slight boost after the ECB's Draghi said the central bank would do "whatever it takes" to preserve the euro, despite lingering worries that Spain may require a sovereign bailout and that the current measures will not be sufficient to prevent Greece from being forced to exit the currency bloc.
Yet Draghi has been known to disappoint the bulls in the past as well and there is ring speculation that there is no way that Greece will be able to stay in the zone. With a big payment coming up and no money the EU and the Fed is going to have to act fast to keep this rally going.
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