Traders Nervous in Advance of Bernanke’s Speech at 10AM

Metals are changing hands in a mixed and quiet fashion. Silver is 7 cents higher at $13.99. Gold is $943.005 up $1.25 per ounce. Palladium is $1.00 lower at $275.00. Platinum is down $3.00 and trading at $1239.00.

The lack of activity is being ascribed to nervousness in advance of today’s scheduled speech by Fed Chairman Bernanke at 10 am eastern. Expect Dollar volatility. The head of the Fed is expected to make remarks about the economy at the Annual Fed Symposium in Wyoming. Of greater concern should be whether Mr. Bernanke gets a second term, with President Obama to make that decision shortly. Early indications warn that a change at the helm of the Fed would cause a major stock market shake out.

Speaking of the stock market; the Dow ended Thursday with a 70 point gain and appears to be headed for another 40 point gain this morning with traders expecting to see a slight improvement in this morning’s release of Existing Home Sales. The latest estimate calls for a reading of 5 million units compared to June’s 4.89 million. Just another example of bad but better.

Meanwhile over in the energy markets the price of Oil continues to rise with electronic trading showing a gain of 76 cents to $73.74. Keep in mind the recent rise in the price of Oil is a two edged sword. Rising prices implies higher demand and greater economic activity, but rising prices also tend to divert consumer spending dollars which will ultimately hurt economic expansion.

In currency trading we find the Euro up 76/100ths of U.S cent in advance of the Bernanke speech; and in line with the weaker Dollar and higher oil. Last trade $1.4320.

In global matters; Iran has suddenly agreed to allow greater monitoring by U.N. inspectors of a uranium-enrichment facility, ending a long standing diplomatic impasse. You get the sense that Iran is trying to divert world attention from it’s current social unrest. In a final note; Cash for Clunkers will officially end next Monday.

Weds Afternoon in The Markets

Gold close 952.00 up 4 dollars, Silver closed at 13.70 up 17 cents and the Dow is now 8905.00. Crude is 65.15 up 1.13, Platinum closed at 1175.00 unchanged and the Euro is now 142.30 up 51 points.

Short and sweet today.