“This lasted until the boys showed up for work in New York where things really got serious to the up-side. But once the London p.m. fix was in, the boys wasted no time in getting things cooled down in both metals. The stocks did well too” says Ed Steer.

Of course all this activity in the precious metals was on the back of a fairly significant fall in the US peso. It will be interesting to see if there’s any follow-through today in either the precious metals to the upside…or the US$ to the downside.

Open interest numbers for Tuesday were up once again, with gold up 3,190 contracts and silver up another 1,175. Nothing too big in these numbers, but it’s a given that the open interest numbers for Wednesday will be on the large side.

A couple of stories today. The first has to do with the alarming situation with world grain supplies and government’s reactions to it. As I said yesterday, Haiti’s government fell over this issue, and the latest story is from the Financial Times out of London, where one of the world’s largest grain exporters, Kazakhstan, just announced it was halting all foreign sales. The story is headlined “Biggest Grain Exporters Halt Foreign Sales”. This is serious stuff, folks. The story is linked here.

The other story is from John Embry over at Sprott Asset Management out of Toronto. His April missive is courtesy of Investor’s Digest of Canada and is entitled “Credit-Creation Mechanism Appears to be Broken” and is linked here.

I argued then…and would argue now, that the idea of a “strong dollar policy” is a vacuous notion. – Former Treasury Secretary Paul O’Neil (Bloomberg: 16 April 2008)

It was another “Alice in Wonderland” day on Wall Street yesterday…with the boys making another silk purse out of a sow’s ear. Let’s see what they can manufacture today, and all of us at Casey’s Daily Resource Plus will be here tomorrow to discuss it with you.