Tooth and Nail

94
Fri, Mar 11, 2016 - 10:57am

Wow. The Forces of Darkness are fighting us for every last tick, nakedly issuing new Comex contracts at a record pace in a desperate attempt to hold gold back from new 2016 highs. Will they win again? When was the last time they lost?

I must admit to a certain level of frustration today. After yesterday's reversal and rally, gold appeared to be on the verge of another breakout. Instead, after surging $10 higher to $1284 at the "Asia open" last evening, gold is now down $20 and back to $1264. How/why?

  • First of all, incredible naked short issuance by The Bullion Banks on the Comex. Just yesterday, they increased the total open interest by 15,000 contracts to a new multi-year high of 504,000. This represents new obligations to deliver up to 1.5MM ounces or 47 metric tonnes but did The Banks deposit any additional gold or put up any extra gold as collateral? Of course not.
  • Price was sat upon all night long as we even saw a return of The London Monkeys after a 3-day absence. Here's a look at price immediately following the Asia open.

  • Next, we get the standard London PM fix screw job where price is suddenly smashed for $5 just as the Fix is determined:

  • And now, at 10:30 EST, I look up to see price at $1258 and down $15 on the day, $26 or 2% from the "Asia" highs. Ridiculous. Is there any accompanying news? No. Has the euro given back all or even part of its gains from yesterday? No. Has the yen suddenly plunged, taking gold with it? No. This is nothing but plain, old standard Cartel raiding. Brutal. Totally unfair. Completely manipulated. Sickening to watch.

So, is that it? Are we doomed to suffer another massive raid and Spec rinse cycle? It's hard to say. The FOMC and accompanying "fedlines" next Wednesday will go a long way toward determining what happens next? Will Mother raise the FF rate again? I doubt it. Will she and her Goons proceed to jawbone their way to dollar strength? Yep. And will The Cartel use this jawboning to raid price even further because "all is well, the economy is strong, markets are surging, rates are headed higher"? Of course.

We will, most definitely, have to watch the charts closely. For now, both metals are hanging tough despite all of the repeated raid attempts and incessant creation of paper metal.

At the end of the day, this is all criminal behavior but what do you expect from a bunch of unregulated criminals? Since the end of January, they've now issued over 130,000 new Comex gold contracts to meet the Spec paper demand. That's 13MM paper ounces or 404 metric tonnes. These banks don't have this gold nor do they intend to find and deliver it. They're simply waiting the process out. Hoping/planning to smash price with such force that the Specs will rush the exits. This Spec selling will allow The Banks to buy back and cover their shorts, thereby reducing open interest and closing positions without ever having to deliver any metal. It's criminal. It's fraudulent. And it's the way business is done on the Comex.

As you can tell, I'm a little beaten down today so I'm planning to take the afternoon off. My pal, Sweetness, is in town so I'm going to watch a little basketball, drink a little beer and play some golf...though not necessarily in that order. As such, there WILL NOT be a podcast this afternoon. We'll record and post one tomorrow morning, instead. (And don't go complaining about how you need me to read the CoT for you. I can tell you right now that it's going to be horrific with the largest Commercial NET short positions in years. We'll deal with that tomorrow.)

Have a great day and try to find some solace in the fact that LIES cannot continue forever. The TRUTH always wins and The TRUTH will one day set prices free.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  94 Comments

infometron
Mar 11, 2016 - 2:40pm

Classic dampening pattern?

I know we have some very astute physicists here in turdville. Check this out, I've seen and made note of this pattern many times before... does this look like the price is being controlled by a dampening algorithm to you?

StevenBHorse showed an example of what I can only assume was a bid ask stack for gold futures contracts from a few years back... If those data were available in real time and could be captured and modeled, that could possibly provide proof of a price suppression algorithm, especially as demand starts to peak out...

silverwhere
Mar 11, 2016 - 2:47pm

@James Crighton

That's good news JC.

Ten bucks >>> most Local Coin Shops are FAR MORE dishonest than GoldMoney.

infometron
Mar 11, 2016 - 2:58pm

CME COMEX Special Fluctuation Limits

https://www.cmegroup.com/rulebook/files/special-price-fluctuation-limits.xlsx

I read this to mean that the fluctuation limit for Gold Futures (GC) is $100/day, and for Silver Futures (SIL), $3/day... Don't think this is any change from what we noted a couple of years ago, and they wouldn't have much impact at current levels (although we did have a ~$60 fluctuation in gold a couple of weeks ago), but once prices get up into new all time highs, they would progressively dampen any upside movements.

Also, so much for any substantial one-day commercial signal failure...

Such a case would have to play out over a number of days...

Leaving lots of time to increase margins...

Been there, done that, eh!

infometron
Mar 11, 2016 - 3:14pm

last hour of trading...

time to pump stawks and dump metals...

right on cue! bastardos!!

infometron
Mar 11, 2016 - 3:18pm

Happy weekend everyone!

I've seen enough! I'm cutting out early too! Even though it is too wet for a round of golf here, it is past noon, so I can fully justify tying into one (or more) of these:

Cheers, info

blackhawk01
Mar 11, 2016 - 3:37pm

Gotta love that Gold CoT!

Cant wait for the rant!

JQuest
Mar 11, 2016 - 3:40pm

Right On Que!

With the 2:00 pm PM kick in the balls.

This gets so Fu%k'in old.

JQ

MiningJunkie
Mar 11, 2016 - 3:41pm

GLD puts

I would love to short the NUGT in here but volatility too scary so I am wagering $10,000 on a GLD short at $120.30 looking for $170.

joeblack
Mar 11, 2016 - 3:43pm

COT

https://www.cftc.gov/dea/futures/other_lf.htm

commercials move 23900 gold contracts to the short side

MiningJunkie
Mar 11, 2016 - 3:47pm

COT

reminds me of Phyllis Diller on a bad morning....too ugly for words.

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