Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (49720)	4/17/2006 12:02:54 AM
From: booyaka	Read Replies (1) \| Respond to of 116555

I wonder how much of this price hike is war talk, and how much is fundamentals. I was wondering the same thing. The fact that both gold and oil are up implies that it may be the former more than the latter. It doesn't seem that tensions have escalated over the weekend, but maybe the market is reacting to the Iranian president's anti-Israel rhetoric of last Friday.

To: CalculatedRisk who wrote (49720)	4/17/2006 12:19:06 AM
From: regli	Respond to of 116555

"I wonder how much of this price hike is war talk, and how much is fundamentals." I have been asking myself this exact same question as well. Some of the spikes are likely war talk whereas the underlying cause could just as well be fundamentals. On the oil front, some of the recent noises out of Arabia make me very suspicious that something is up with Ghawar. On the metals side, we know that inventories are running very low on the LME. As to gold and silver, there was a big switch from commercials to the long side despite the increase in price. Could also be a telling sign. Definitely a very difficult market to call in the short term.