The Battle Continues

I thought the Swiss were always supposed to be "neutral" in global battles for supremacy. Apparently not.

We are clearly in a very interesting battle for the price of gold. Through their actions, "Western" central banks (the bad guys) have made it quite clear that they would like to see the price of gold drop, hoping to see the value of gold be reduced at the same rate they are reducing the value of their fiat. "Eastern" central banks and prudent global investors (the good guys) are seizing upon each manufactured dip. Thankfully, so far, the good guys are winning. Whether this will cause our adversaries to give up and retreat to higher ground remains to be seen.

The battle will almost certainly be joined soon by the criminal C/C/C. The actions of the central banks have once again provided the volatility "cover" they need to raise margins. Of course, the C/C/C is not a true ally to the central banks in this battle because they are acting in their own self-interest. Like we saw yesterday, The Cartel will likely use any protracted weakness to continue covering long-held short positions.

Given all of that, I think we can be quite confident that recent trends will continue and, accordingly, that the trendlines on the charts below, especially the longer-term ones, will continue to act as solid support.

paper_9-9amgold1.jpgpaper_9-9amgold2.jpg

paper_9-9amgold8.jpgpaper_9-9amsilv8.jpg

So far, gold has rallied back nicely from its lows near 1825. I have a last of 1844. As the battle continues to rage, my suggestion to you is to stay on the sidelines. Hold your positions but only add on steep selloffs, down to the major support areas, where confidence is higher that floors can be found.

I'll be watching things all day and will update as needed. TF

416 Comments

margaritatime's picture

Thank you

Thanks TF

Shill's picture

Some morning laughter

Geithner: Obama jobs plan would quickly add jobs - MarketWatch

HA HA HA HA HA HA HA HA What a retard.

Thanks Turd for the update I needed it.

JimmyTheHand's picture

COT Report

I think they COT report will reveal much this week and next.  As for me, if we hit 1775 and/or 40.75 I will there to buy with both hands!!!!

Thanks for everything Turd.

unky's picture

CB achieves nothing

The central banks just achieved that Gold is not going even higher priced in swiss francs. However its now still as high as it was when they devaluated the franc.

I doubt they will be able to push it as low as it was before (~1500 francs/oz)

THis is espacially true when considering the swiss is now in the same boat as the Euro and the Euro is loosing ground compared to the dollar (already 1€=$1.37 today)

Turd Ferguson's picture

Hmmm....

MODERATOR

I would imagine that his may help the PMs catch a bid...

http://www.zerohedge.com/news/market-chatter-greek-default-over-weekend

ericplatham's picture

How many times can gold touch the bottom line?

I am sure looking to the FOMC meeting in 11 days

silver foil hat's picture

@shill

adding one job this month will be an infinite increase (percentage wise) in the jobs created over last month.

I can see the headlines now to praise Sotero...

SEPT JOBS REPORT.... INCREASE TOO HIGH TO CALCULATE.

That's just with ONE job created this month.

Shill's picture

Hoping to see Miners blow off

Hoping to see Miners blow off all this noise and continue higher. As that is all it really is noise. Be wise folks if your in a long position no need to kill it. If you have dry powder add to it, the long term benefit will be greater than having to buy back in later at a much higher price. NOTHING HAS CHANGED IN 24 HOURS.

Well unless of course you add in the $ $440 billion jobs plan

$440,000,000,000 folks another $440,000,000,000  printed out of thin air masked as a jobs plan. Soak that in for a moment as you look at your trades. Not one thin dime of this will be seen by the middle class or the unemployed GUARANTEED! This is back door Q&E masked as a care package.  80% of this money will go over seas to stabilize Europe for another few weeks. These shills can't even hide this fact anymore.

Sickening.

SilverBoy's picture

You should watch EUR/Gold! It's funny how EU banks try to

pullback gold price. They have no power to do that.

margaritatime's picture

MH

Turd, others;

My own theory on a MH posted last thread here

I have a feeling they are keeping this round in the chamber, they already have the premise [reason] of volatility to do an MH.. Now they are just going to dangle it. Perception and confidence, like I said.

D E's picture

Kudos, Turd, Kudos

Keep on callin' 'em like you see 'em, Turd. The EuroTrash show just keeps getting crazier and crazier and the race to the bottom continues.

Tom L's picture

@shill

I see a slightly negative open for the HUI.  The question will be if another attack on Gold occurs to time with the CRIMEX open.  A tense 25-35 minutes coming up.

Ta,

Shill's picture

Gold magins hiked Gold

Shill's picture

Thanks Tom, noted. Hoping the

Thanks Tom, noted. Hoping the traders see this for what it is. Either way I am in in for the long haul so bring it on.

Tom L's picture

Oil getting hammered

There is a rising wedge now on the 5 hour cruded chart forming.  It looks poised to fall to around $85 is the RSI gives way at 50. 

http://www.flickr.com/photos/29681681@N06/6129625407/

Ta,

Hard Rain's picture

@margarita

I read the previous post re: MH.

Can you provide more details? What is SPAN? etc

My brain is like curdled milk!

PS: That must be one heck of a spreadsheet.

Thanks,

Rain

Ferd Torgerson's picture

Well, this should be good news to some shorts

JPM was cited as a source for some of the info used in this article.

http://finance.yahoo.com/news/Silver-Wheaton-Silvercorp-iw-1763432726.html?x=0

ceperez's picture

Disagree with hold recommendation.

Folks look at the volume!!  Since the raid at 6 am, gold volume was a mere 26K traded and has progressively moved up.  Silver volume add around 4K and just crawled upwards.

Situation is extremely bullish and any dip of silver bellow $41.5 or gold below $1849 (43 * 43 ) is a screaming buy!

Long John's picture

Ed Steer at GATA Gold Rush 2011

Ed Steer: Central Banks Are Printing Oceans of Money

good stuff....recorded in London on August 6th 2011.

Tom L's picture

Copper

has been pushed down below $4.04 into heavy support.  Does anyone have any clue what they're doing this morning?  Dow futures down, oil and Cu down, gold and silver down.... Um. Would someone explain any of this?

Ta,

Hard Rain's picture

I bought the dip...

....and ordered my first Year Of The Dragon coin from APMEX.

I continue to feel that 20/25 years from now, when I will be looking at retirement,  i will look back and say, it was a damn good decision to BTFD.

Rain

Green Lantern's picture

(No subject)

margaritatime's picture

Rain

SPAN is a risk management the CME uses to gauge volatility on commodities [1]. Despite what the CME parameters state publicly, I believe the algos are much more complicated that measure risk. Essentially measuring volatility and their own interests. I have gone back with data for several years confluent to the MH's in the past to determine exactly what triggers a MH. In short, think their SPAN fundos change from time to time. I am now building a spread that has factors such as what JPM and others have vested interests in at the time.

It's a work project. Just something that interests me.

flying monkey's picture

Message for the Empire

Kurt Russell says it better than me.

¤'s picture

SLW/SVM

Everyone here who follows them knows they have been stepped on hard.

What a hit job put out by JPM and whoever on these two stocks. Shows how desperate they are and how much they stand to lose.

I'm still waiting on SLW and SVM seems to have shaken off last weeks (seems like longer) extortion "Short" letter attempt.

Good luck to all today.....here it comes........5,4,3,2.....

Hard Rain's picture

Thanks marg

You are a clever woman. I wouldn't even know how to begin to do something like that.

Please share with the community, if you think it will be of any benefit.

Rain

ewc58's picture

Yo, Jamie and BM:

Tom L's picture

Attempted Raid

on the 1 minute chart right at 9:30 and it looks like it's failing. 

Ta,

margaritatime's picture

H rain

Right now I use live data from my, [cough], boss' server.. Just for convenience. The catch 22 [IMO] is that as soon as that info is posted publicly the data would change...

Tautology.. lol

Syndicate contentComments for "The Battle Continues"