Gold Takes Another Leg Down

Morning Miners!

It is 6:42 am. Grab a cup and let's kick-start the week. The ole Colonel added a new link to the right for local weather. This is the National Weather Service feed from Henderson Summit and has all sorts of satellite imagery too. I'd like this report to be a one stop shop, pardner!

Gold stumbled another $20 in early trading to bring us to solid 8-handle country at $877.9 (June contract). Am I discouraged? Hell no. The Colonel bought a little chunk Friday and I'll buy a little more if we fall further. Does anyone really believe there won't be any inflation down the road? Earnings season will start tomorrow with Alcoa (AA)reporting at 5:00 pm (ET). This should sour the lemonade a bit. I'll stick my neck out; gold will head back up and copper will bust two-bucks before the end of this week. See you at the Owl Club Friday, I'm buying if I'm wrong.

The dollar ("Dixie" or .DXY) is up a quarter percent and the commodity index (.CRB) is down a splinter under 1 percent.

Let's walk the walk:

Silver is following gold down at $12.285; Molybdenum steady at $8.20.

The DOW is down 51 points to 7,966.45; the S&P 500, down 8.07 points to 833.30. Here's the miners (ouch!):

Barrick (ABX) $28.92 down 4.96%
Newmont (NEM) $42.63 down 2.26%
General Moly (GMO) $1.21 down 6.20%
Quadra (QUA.T) C$5.98 down 3.55%
Freeport McMoran (FCX) $41.46 down 2.84% (a bellwether mining stock spanning gold, copper & molybdenum)

I know most of you need to get back to work, have a good'un. If you got equipment in the shop and can stick around a bit, I'll talk charts.

At the bottom of this blog page are the Colonel's five charts. I track gold, silver, copper, oil and natural gas futures on a daily basis and update my models every month based on the last 3-months of data. There is a brief explanation below on what these charts can tell you. The ole Colonel will explain more in future blogs. Today's charts include a new model for April and I'm seeing some encouraging news. Checkout "Copper vs Gold" and "Copper vs Oil" buckaroos! Who said global demand is not picking up?

Cheers,

Colonel Possum