Both gold and silver reached their initial targets in overnight trade with gold missing $1,285 by just $0.60 and silver actually exceeding $21 by $0.025. The Dollar had been dropping rather sharply in overnight trade and late Asian trade and early European trade saw buyers surface in both metals especially as the S&P was also flying higher at the time.
The result was that huge flows of more hot money invaded the commodity sector. That has continued this morning especially in the grains that is going to have devastating effects outside of the ag sector, which is basking in new found wealth at the moment. Expect quite vociferous and rightly justifiable anger to soon arise from the livestock and poultry sectors aimed squarely at the idiotic ethanol boondoggle which has helped drive the price of a bushel of corn to a 2 year high with soybeans and wheat riding right alongside of the price spike. Some of this is demand based on increasing world populations plus reduced yields from this year’s crop but way too large a portion of the corn crop is being devoted to government subsidized ethanol production. We are fools burning our food in our damn gas tanks to salvage some guilt-ridden souls’ need to save the planet.