Signs point to a coming surge in the prices of precious metals and oil. Today showed that there is still a lot of strength in the trade. The dollar has stayed flat, undoubtedly because the Euro is weak, too. The long trend of Fiat currencie washing itself out in terms of gold will continue, leaving the world of finance at the whim of the real monie and collateral: gold.
Oil ans silver gained big today because of supply constraints. The SPR release only calmed markets for a moment, and silver demand has been crushing supply on the physical market. Industry will have to come to terms with the fact that many people are buying silver bullion to hedge against inflation, which is near if not at 10%.
Finance is spinning its wheels. The recent news that banks will forgive upwards of half of mortgage obligations may help bank balance sheets, but it will take massive reserves off of the books as well. This is hugely deflationary, and will provide cover for the coming QE Light program that POMO has devised until QE 3 is ushered in by Bernanke sometime around the Jackson Hole conference.
My summer trend is still in line. Look for gold, silver, platinum, and oil to trade in their respected ranges for another month. We will look closely to find if the range is being spread or tightened; as of now it is in line between support and resistance.