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Gold has traded between $1,331 and $1,340 so far today…as of 9:30 am Pacific, bullion is down $2 an ounce at $1,339…Silver is off 34 cents at $18.91…Copper has slid 2 pennies to $2.15…Crude Oil is down $1.47 a barrel to $47.05 after 2 weeks of huge gains while the U.S. Dollar Index has retreated nearly one-fifth of a point to 94.56…

The world’s largest Gold-backed ETF, New York-listed SPDR Gold Shares, reported an outflow of 4.5 tonnes last week, adding to the near 20-tonne drop in its holdings the previous week…the slowdown in ETF accumulation this month, and the fact that hedge funds have cut longs in 5 out of the past 6 weeks, is a bullish contrarian set-up for September in our view…

This week’s focus of attention for investors will be on Jackson Hole, Wyoming, where central bankers from around the world will gather starting Thursday for an annual meeting in the mountains…Fed Chair Janet Yellen is due to speak the following day…the “Federal Reserve’s Monetary Policy Toolkit” will be the subject of her remarks, but what all those central bankers need to hear is a good lecture on “Monetary Malpractice”…

The Fed “VIX” Spikes

Fed officials have ramped up their rhetoric recently, and it’s hard to say if Yellen’s speech Friday will do much to help unravel the central bank’s tangled web.   “I wish we had a Fed speak (volatility index),” James Paulsen, chief investment strategist with Wells Capital Management, told CNBC.   “I’m telling you it just spiked through the roof.  It’s all over the map. I’m confused about what they’re trying to do.  We’ve got people talking out of every side of their mouth. The Fed VIX is at its highest ever.”

ASEAN-5 Countries Give Boost To Commodities

Growth in China may have slowed but a commodities rebound is under way and the world’s biggest miner knows where the next growth story is building – emerging economies in Southeast Asia…combined GDP in the ASEAN-5 nations – Indonesia, Thailand, Malaysia, the Philippines and Vietnam – will rise about a third to $3 trillion in the 5 years to 2020, fueling commodities-intensive infrastructure projects…momentum like this across Asia will help maintain and increase commodity demand, BHP Billiton’s CEO Andrew Mackenzie stated last week…

“People have been so used to believing that commodities was a China story, and that with China decelerating where’s the growth going to come from?”, commented Nathan Lim, Sydney-based head of research for Morgan Stanley’s wealth management division, in an interview with Bloomberg.  “That incremental demand is coming from the emerging markets, and that’s the part people don’t have their head around.”

Crude Oil Update

Crude Oil’s 7-session winning streak has ended today after Morgan Stanley threw doubt over whether an agreement among OPEC members would come to pass…analysts wrote in a note that a deal was “highly unlikely” as producers remain reluctant to surrender market share.  “The market treats OPEC as the central banker of Oil where simple jawboning can move markets and scare off shorts,” analysts wrote. “However, we see too many headwinds and logistical challenges to a meaningful deal given past statements by OPEC and its members.”

Other headwinds have pushed Oil prices back today today – China has ramped up exports of refined products, U.S. producers added rigs for an 8th consecutive week, and prospects have emerged for increased exports from Iraq and Nigeria…

In Today’s Morning Musings…

1. Oil bears beware – $70’s are more likely than $30’s…

2. Silver moving into an ideal position for staging another major near-term move to the upside…

3. The Silver stock that once again is giving a screaming “buy” signal…

4. Daniel’s Den – on Ma Yellen, private prisons and value in Chevron…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…