Under The Surface

56
Thu, Apr 23, 2015 - 10:47am

While the computer-derived paper price of gold continues to be jerked around by the whims of the Forex algos, I thought I'd bring to your attention some far more important items that are bubbling just beneath the surface.

Let's start with a seemingly unrelated story. Did you see this today at ZH: https://www.zerohedge.com/news/2015-04-23/deja-deja-deja-deja-vu-mysterious-us-bond-seller It contains this chart:

Though of us who follow gold should be able to immediately recognize this for what it is, having seen it about a million freaking times through the years. NO DOUBT this is a timed algo trade, meant to influence and direct the Long Bond market. The questions become: Who and why?

  • Who? To move a market as large as the T-bond futures market, you need some real heft...this ain't your average hedge fund. Instead, this is very likely The Fed itself acting through its network of Primary Dealer accounts.
  • Why? How many times have I mentioned that The Fed can't raise short rates without the risk of flattening, or even inverting, the yield curve? Solution? If you can raise the long end by 25 bps, you can raise the short end by 25 bps, too, with no overall change to the curve.

And, to me, that is definitely what you're seeing here. A Fed, desperate to raise the Fed Funds rate in order to promote "normalcy" and "dry powder", attempting to manipulate long rates higher in order to create the "space" needed to raise the Fed Funds rate in June.

If I'm right, does that raise the risk of some "bad Fedlines" next Wednesday? Yes it does as a matter of fact. Am I worried that this may cause the computer-derived paper price of gold to fall a bit further. No I am not. Not in the least.

WHY? Keep reading...

Below are some hidden gems regarding the ongoing, global de-dollarization movement. First this from our buddy Alasdair, regarding gold, the SDR and fading dollar hegemony: https://www.financeandeconomics.org/gold-sdr-brics/

This post from two weeks ago: https://www.globalresearch.ca/chinas-defiance-before-the-imf-incorporate... which references this from five years ago: https://abcnews.go.com/Business/story?id=7168919

And then this...A translation of a Russian article that discusses some statements made last week at the "Asian Davos", a "forum in Jakarta, created by Beijing as a counterweight to Western Davos, designed as a platform for the discussion of the economy in the post-American world." Though the translation is a bit jumpy, I think you'll be able to get the point: https://fortruss.blogspot.com/2015/04/the-rats-are-leaving-dollar-titani...

So, again, am I worried about the short-term trends of the fiat-conversion price of gold and silver? Nope. True, I spend a lot of time and energy discussing and forecasting such things but, in the end, we must all remain focused on the MUCH BIGGER PICTURE.

To that end, I'm still excited about the role that Bullion Capital and their new allocated metal exchange can play in the new world. The CEO of Bullion Capital is Tom Coughlin and we had hoped to record an update for you today on the status of the new exchange. Unfortunately, due to his changing schedule, we've had to push back to tomorrow. In the meantime, Tom was on with Max Keiser earlier this week and the program was aired earlier today on RT. Please take the time to watch in preparation for listening to Tom and I tomorrow.

Finally...and I know it's very short notice...since I didn't schedule an A2A this week, having planned on speaking with Tom today, instead...At 1:00 pm EDT (New York time), roughly 2 hours and 10 minutes from now as I type, I'll be in the GoToWebinar "studio", fielding any and all questions from any of you who'd like to meet me there. You can do so by clicking here: https://attendee.gotowebinar.com/register/2329994148146133506 If no one shows up, then I'll just ramble incoherently for a few minutes and post the recording as today's podcast.

Have a great day. Keep the faith and persevere.

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  56 Comments

Apr 23, 2015 - 10:49am

This conflict is now

This conflict is now deepening by the hour:

CPE
Apr 23, 2015 - 10:49am

thx

Turd

silver66
Apr 23, 2015 - 10:50am

second

Silver66

infometron
Apr 23, 2015 - 10:51am

Wow

Third planet from the sun!

Apr 23, 2015 - 10:53am

And this is excellent from Denver Dave

And this is excellent from Denver Dave...took GATA's post and added to it:

https://investmentresearchdynamics.com/weve-got-to-start-rigging-the-gol...

infometron
Apr 23, 2015 - 10:58am

by the way...

King World News is experiencing difficulties this morning... lots of this:

Internal Server Error

The server encountered an internal error or misconfiguration and was unable to complete your request.

Please contact the server administrator and inform them of the time the error occurred, and the actions you performed just before this error.

More information about this error may be available in the server error log.

Apr 23, 2015 - 11:01am

btw & fwiw

Another HUGE jump in open interest in both metals yesterday on the big price decline. Obviously LOTS of new, fresh shorting going on.

Gold was down $16 and its OI jumped a massive 9,161 (2+%) to 406,540. This is the highest OI in a month.

Silver was down 21¢ and its OI surged to another alltime high. UP 1,645 (1%) to 184,278. WOW!

infometron
Apr 23, 2015 - 11:03am

Eric has been complaining a

Eric has been complaining a lot lately about repeated DOS attacks. I don't envy him.

Perhaps the biggest benefit of closing off TFMR is the reduced notoriety. We used to get DDOS'd nearly every week it seems and the hacking in 2013 took us offline for two weeks. Now we haven't had one in months. <Knock on wood>

TF
Apr 23, 2015 - 11:06am

Hmmm. Ya think crude noticed these headlines?

A close above puts a move to -66 on the table. That's 10%+ and tradable.

SteveW
Apr 23, 2015 - 11:08am

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