Gold Prices Today Slightly Down, Await China, Ireland

While it seems China's decision has finally been unveiled on what they're going to do to combat inflation, Irelands is still waiting in relationship to their sovereign debt crisis, and gold prices today are under slight downward pressure until that plays itself out.

China has taken the initiative to increase the amount of reserves banks mus hold by another 50 basis points, something that is less monetary medicine than raising interest rates, as it relates to interaction with gold price movements.

Another increase in interest rates may have put more pressure on gold prices as far as slowing their torrid upward pace.

Also needing to play out is what will be the results of the meeting Friday of the Commodity Futures Trading Commission, as they work things out in connection to new regulations in the Dodd-Frank Act.

Specifically addressed will be position limits for physical commodity futures contracts and swaps.

Consequently, it appears gold futures will be more volatile than spot gold prices until these things work through the system.

Once they have, support prices for gold will be more clear, although the are in a holding pattern for now, remaining relatively level.

CFTC Caves in to Government

Government Interference in Oil Markets

Somehow the Commodity Futures Trading Commission, which has always said it has never found a correlation between speculation and oil price swings, has suddenly got regulation religion, and now says it's ready to go before Congress and 'admit' speculators are playing a huge role in price runups. This is plain evil, and an investigation needs to be conducted on where this new found information has come from, and if shady politicians and some big energy companies are behind the new found information.

Any price swing in any commodity can happen short term with commodity investors, but to say that is what's behind the price swing of last year which pushed oil prices up is in itself huge speculation, and just another attempt by the socialist Obama and Democrats to attempt to play god, thinking they can alter the age-old reality of supply and demand.

One of the major reasons this is ludicrous is commodity investors can make money when prices go up and down, and so the idea they can push prices up on their own has no merit, and supply and demand always bring it back to reality either way, as consumer respond to price swings. It's as simple as that, and the strong-arming and dishonesty emerging concerning so-called speculators being able to manipulate the market in any meaningful way is just ugly and a lie.

Some Democrats need to be investigate concerning this, along with the Commodity Futures Trading Commission to see if there is any criminal activity concerning this sudden turn around by the CFTC, which is unprecedented.

Misguided and misinformed watchers say this will help consumers. No it won't. Consumers do struggle at times when prices swing up, but they also profit tremendously when prices go down. To say government regulation of the oil market will make a difference is stupid and ignorant.

The failure of socialism and turning of communist countries to capitalism has already shown that governments cannot and should not attempt to interfere with any market, as the unintended consequences that always follow never seem to teach them to stick to minding their own business, rather than interfering with the market place.

Government Interference in Oil Markets