Setting The Table

80
Thu, Feb 5, 2015 - 10:41am

We've been watching gold be pressured all week in anticipation of a lower rigging on Friday if the BLSBS "exceeds expecations". The process continues today as gold is down even though every single headline I can find could be construed as gold positive.

Whether it's:

  • The continuing Greece-ECB saga: https://www.zerohedge.com/news/2015-02-05/greece-refuses-back-down-gover...
  • A soaring US trade deficit that will negatively impact GDP: https://www.reuters.com/article/2015/02/05/us-usa-economy-idUSKBN0L91UE2...
  • A plummeting Baltic Dry Index, though Forbes of course says it's nothing to worry about: https://www.forbes.com/sites/timworstall/2015/02/05/why-you-shouldnt-wor...
  • Surging layoffs and jobless claims: https://www.zerohedge.com/news/2015-02-05/layoffs-surge-176-yoy-shale-st...
  • US Secretariat of State Horseface placing all of the blame for Ukraine Crisis on the Russians: https://www.cnn.com/2015/02/05/europe/ukraine-conflict/
  • And yet, gold is off more than 1% from it's overnight highs.

    In case you haven't been able to follow along all week, here's what the deal is...

    As of Tuesday January 27, The Cartel Banks were gross short a whopping 323,486 Comex gold contracts or slightly more than 1000 metric tonnes of paper gold. Roughly the paper equivalent of Switzerland's supposed physical hoard.

    This is up from 206,873 contracts short back in October of last year. This 56% increase in under four months has been entirely caused by a flip of bearish Spec sentiment and a return of Spec long interest. Rather than allow price to rise to find a natural, buy/sell equilibrium, The Banks have simply issued new paper short contracts in the hopes of:

    • containing the rally
    • eventually buying back and covering the shorts at minimal loss or even a profit

    Stated again...From early October to late January, The Gold Cartel Banks added 116,613 naked short Comex gold contracts. If forced to deliver the actual metal, this would equate to 11,661,300 troy ounces. Problem is, the entire Comex registered AND eligible vault only holds 8,109,244 troy ounces.

    Hmmm. Since this is somehow all considered "legal" and "fair", it falls to The Banks to somehow rig prices lower so that they can cover these shorts back up and perpetuate the current scam/charade. This is what they are doing this week.

    Regardless of the headlines. Regardless of the continued stories of extreme Asian physical demand. Regardless of the fiat currency devaluation. Regardless of the looming Euro crisis. Regardless of the potential of nuclear-armed Hot War in Ukraine. Regardless of the moribund US economy. Regardless of negative interest rates around the globe. Regardless of the cost of mine production.

    All that matters is that 8 largest Banks are collusively rigging prices lower in the hope that they can get some of the 60 largest Spec funds to liquidate. The Banks' clear goal has been to breach the 200-day moving average and, as yet, they've been unsuccessful. For the ultimate, headline-grabbing bang for their manipulative buck, they're hoping to use tomorrow's BLSBS to inspire the selling needed to finally break down and close price below this important technical indicator. Let's see if we can write the Yahoo Finance or Marketwatch story right now:

    "Following today's surprisingly strong US jobs report, gold fell over 1% and closed below the technically-important 200-day moving average for the first time in three weeks. Analysts interviewed by (insert media here) noted that today's close likely indicates more selling to come and foreshadows an end to the nacsent rally in the yellow metal that seemed to begin in January."

    See how that works?

    Anyway, this is what The Banks and the sycophant media are hoping will happen. Will it actually come to pass? That is the question.

    Below is a reprint of the chart I've posted several times this week. Since I believe that:

    • Gold found a final, physical bottom back in November and December AND
    • Physical demand is unrelenting AND
    • News flow is supportive to continued buying of paper metal derivatives

    I'm looking instead for a bounce and rally tomorrow or early next week. The area in which I'd like to buy an AGE or perhaps even a call option is designated by the red circle on this chart. Will price get there? Probably.

    So, don't get frustrated by the seemingly nonsensical price action. Understand what's going on and why, and then use this knowledge to your advantage.

    Have a fun day and then let's have even more fun tomorrow.

    TF

    About the Author

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    turd [at] tfmetalsreport [dot] com ()

      80 Comments

      Refresh
    zenharmonics
    Feb 6, 2016 - 10:05pm
    Safety Dan
    Feb 6, 2015 - 6:49am

    Bank of America: “More

    Bank of America: “More ominous would be a renewed bull market in gold reflecting a loss of faith in central banks.”

    Bank of America: “More ominous would be a renewed bull market in gold reflecting a loss of faith in central banks.”

    — zerohedge (@zerohedge) February 5, 2015

    Hedge Against 2015 Central Bank Surprise With Gold

    In the first month of 2015 alone, we have seen surprises from the Central Banks of Switzerland, India and Singapore. SNB is now moving to weaken the CHF at an undefined range and might […]

    February 6th, 2015

    https://investmentwatchblog.com/bank-of-america-more-ominous-would-be-a-...

    Angry ChefSteveW
    Feb 5, 2015 - 9:49pm

    Canadian Court Ruling Against Private Central bank

    Steve,

    I believe Bellla was referring to the fact that since 1974 when the Commie/Illuminati Stooge Trudeau gave away the rights of Canadians to the Bankster Cabal. Not that the Private Central Bank was in fact ever private but in fact absconded by the criminal Cartel.

    SteveW
    Feb 5, 2015 - 7:34pm

    @Libertybella:Canadian court ruling against private central bank

    Your link is simply misinformed.

    The Bank of Canada is a public bank belonging to the people as established by The Bank of Canada Act, 1934.

    To find out more about the real issues see:

    https://www.comer.org/

    Pug Nuggetsheathbr
    Feb 5, 2015 - 6:29pm

    Tips

    This Christmas, I gave my favorite bartenders a TFMR silver oz. It has TEOTGKE written right on it, and it's advertising for Turd. And man, was it fun giving something valuable.

    Edit: This was in response to Heath's comment about paying with silver out in the community.

    CPE
    Feb 5, 2015 - 5:50pm

    HSBC has apparently been able

    HSBC has apparently been able to find 68.5 mts to add in just the past month.

    Uh-huh...

    AIJ
    Feb 5, 2015 - 5:49pm

    After Margin rate hikes the next story will be..

    ...that gold and silver are radioactive, dangerous and should be

    turned in to the appropriate governmental authorities.

    CPE
    Feb 5, 2015 - 5:45pm

    GLD

    Just making shit up! 5 tons today? Lolol

    Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

    Dr. P. Metals
    Feb 5, 2015 - 5:33pm

    Until

    The mythical delivery failure fairy is spotted, they can do this all day, week, month and year. That is the only thing that will teach anyone that there is a difference between paper metal and physical metal

    -SilverIsMoney-
    Feb 5, 2015 - 5:26pm

    Someone care to explain this?


    That's a 1 min chart...

    Gives even more credence to Craig's red circle and what da boys are planning on doing here... I mean anyone out there care to explain this other than outright manipulation? This does not seem like a loss of control to me but is instead a spectacular image of how in control they still are.

    "If I was a gold manipulator I would be embarrassed at how obvious we're making it." - Jim Rickards

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