Another blow to the global dominance of the U.S. Dollar as Russia is on the eve of trading gold and oil/oil products for rubles.

RTS bourse to start trading oil, oil products, gold on June 8

"The first trading in contracts for gold will commence in Russia on June 8," the RTS said in a statement.

Equity optimism remains among the wealthy although worried about returns.

Survey: Wealthy Americans Keen on Market

 “The 2006 U.S. Trust survey of affluent Americans, the 25th in a series begun by the New York-based wealth management company in 1993, measures the confidence of a sample of the top 1 percent wealthiest Americans -- those with an adjusted gross income of more than $300,000 or a net worth greater than $5.9 million.

The study found that 63 percent of respondents were optimistic about their U.S. stock market investments, up from 48 percent in 2005 but still below the 2004 high of 66 percent.

Still, the wealthy are concerned about future returns, the study found.”

Investors keeping a close eye on FOMC members as to future direction of interest rate hikes.  Today’s Fed watch brings St. Louis’ Poole into focus as he recommends aggressive rate hikes in a bid to keep a lid on rising prices:

Fed's Poole weighs in on interest rates - CNNMoney

"If inflation turns out to exceed our expectations, our target range, I do not believe we can count on a slowing economy to bring inflation down, by itself, quickly," Poole, said in an interview with the Journal published Tuesday.

After Poole's remarks were published, interest rate futures showed an increased chance the Federal Reserve would raise interest rates at its policy-setting meeting at the end of this month.”

Real Estate worries continue as the Housing Index took another tumble Tuesday, down nearly 3%. The HGX is now at levels not seen since late 2004.  The Index peaked during mid-2005 at 293.66 quoted last at 213.15, dropping some 27% over the past year.

The Index has dropped  from the low 230’s last Friday to a low of 210.50 – a sizeable drop in the past 3 trading days alone!

Market Statistics:

Gold & Silver:

Total Gold in Trust:
Tonnes: 355.53
Ounces: 11,430,662
Value US$
7,166,425,542.64

- Axiom House is holding a special starting today and all day tomorrow on “Eye of the Pyramid” Learn more here.

“June Gold closed down 13.8 at 629.4. This was 4.4 up from the low and 2.6 off the high.

July Silver finished down 0.45 at 11.845, 0.035 off the high and 0.265 up from the low.

The gold market seemed to be off on a bad foot to start and as the session progresses it seems that a number of outside markets added additional pressure to the market. As in other markets the residual of Bernanke comments seemed to weigh on prices and the slightly softer economic views of other Fed members simply seemed to turn up the liquidative heat on gold. Certainly a sharply higher Dollar and expectations of even more gains in the Greenback was cause to push prices through a series of key chart support levels. As was suggested in the mid day comments the pressure in the rest of the metals markets, the equity market and the energy complex simply made the environment ripe for selling a number of physical demand driven commodity markets.

Some players suggested that the washout could have been more severe considering the overt weakness in gold, the rise in the Dollar and lastly the weakness in the equity market took the heart out of the bullish case in silver. While the silver market has recently been supported by news of falling exchange stocks, the overall physical and investment demand outlook has seemingly deteriorated in sync with falling equity prices. With such stalwart performers as platinum and copper prices remaining under pressure there continues to be talk about some type of major topping pattern but many traders suggest that lower price action could simply rekindle physical and investment demand and in the process end the weakness that has been in place since early May.”

-         The Hightower Report, Futures Analysis and Forecasting

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The Greater Depression

“The battle of the little Big Horn was another name for General Custer's Last Stand where the Sioux Indians wiped him out to the last man, and then scalped them all. I love the analogy.

Our guess is that we will see the results of this fundamental shift toward tighter money over the next decade or two. We also guess that trying to fight this trend by selecting stocks carefully will be like flossing your teeth before the battle of the Little Big Horn.”

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