The Battle Continues

Fri, Sep 9, 2011 - 8:53am

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.

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

About the Author

turd [at] tfmetalsreport [dot] com ()


Eric Original
Sep 9, 2011 - 11:27am


Yes, big holding now. I might flip part of it back if we get a bounce, but still I'd have a lot left that will stay for the long haul.

Hey Ogie, how about some old time hockey!

Dr G
Sep 9, 2011 - 11:29am

POSX is like a rocket these

POSX is like a rocket these days. I'm a buyer of silver right now, it looks to be going higher over the weekend. No fear in buying now and holding. Spidey sense says the S is hitting the fan this weekend.

Sep 9, 2011 - 11:32am

California City Outlaws Gold Sales

California City Outlaws Gold Sales
September 8, 201

Editor’s note: Officialdom in National City insists the moratorium is about crime, but it seems the problem is the rapid turnover in gold at pawnshops does not allow government to collect taxes.

National City has adopted a 10-month moratorium on new pawn shops, secondhand stores and precious metal dealers in the city after concerns about legal problems and crime.

City leaders want to slow the increased interest in gold sales and purchases within city limits. As of Wednesday afternoon, gold was valued at $1,817 an ounce.

“It has just skyrocketed on the number of businesses opening up,” said National City Mayor Ron Morrison. “I mean, people out of their beauty salon or whatever else buying gold… it just becomes this huge deal.”

Read more

Sep 9, 2011 - 11:33am


Greek debt and PII(G)S debt

Sep 9, 2011 - 11:37am

Rand Paul Responds to Obama's Jobs Plan

Turn off the Teleprompter Obama. Well said Rand. Sanity in DC.

Sen. Rand Paul Responds To President Obama's Jobs Speech - 09/08/11
ogie ogilthorpe Eric Original
Sep 9, 2011 - 11:41am

Eric O

Now that is what I am talking about!!! LOL

Have seen the Movie at least a hundred times while on road trips while playing back in the day!!

Sep 9, 2011 - 11:41am

Markets further down!!

I'd be cautious going into this weekend guys/gals where there is smoke there is fire!! If the germans are preparing seem's like a good signal to get into cash if you can, after all they would know right?!?!?! Just ask yourself People don't pay there taxes in greece , they don't have jobs !!! So where is there money ever going to come from ????? Until all these countries figure out how to get people back to work this will never end !!!

I do have a solution get rid of free trade !!!! It does not work and 2008-2011 is the proof you can't move all your jobs offshore and excpect to sell your stuff back to people who just lost there jobs because you wanted to increase profit margins !!! I might be looking at this wrong but I don't think so. In china you are not allowed to sell stuff there unless you create jobs for there economy. So why do we let them ship stuff here ? Does not make sense???? Seems like the whole world is in this china job problem !!!!

Well just thinking out loud good luck to all !!! Keep up the good work TURD !!!

Tom L
Sep 9, 2011 - 11:43am


Gold needs to push through $1860 here to put a floor under the HUI and take this thing back to 638. If they beat it back again I wouldn't be surprised by a gap filling, stop-loss raid on the miners before the CRIMEX cloes.


Sep 9, 2011 - 11:50am

Market tanking...

Something is up... Greek politician said the rumors of a default are nonsense.. but chose to remain anonymous.

Sep 9, 2011 - 11:51am

Options traders

Please help me understand what it means when the volume is excessively more than the open interest, specifically I am looking at my JPM Oct $28 PUTS where Vol is 26k and OI is 4,400?

Sep 9, 2011 - 11:56am

Today from Chuck, the

Today from Chuck, the currency guy (bullish for Gold) talking a bit more about Gold today then usual...


And Gold is up another $3 this morning, trading back to $1,874 as I write. Seems like $1,900 is the line drawn in the sand for Gold, for the couple of times that it has reached that level, it has immediately lost a huge amount very quickly… So, for the Gold price manipulators, and again, folks, this is me, my opinion on what’s happening here… there is some evidence to this, but you have to do your own research and after you do, if you don’t agree with me, then you weren’t viewing the same evidence!

Any way… for the Gold manipulators, they have seem to have drawn a line in the sand at $1,900… Now it’s time for the markets to blow them out of the water! Let them take their short positions and go home… don’t go home mad, just go home!

I’m currently reading a report from Wiki-leaks about the Gold manipulation… and here’s the now exposed cable that will soon be read world-wide… The leaked State Department U.S. embassy cable – 09BEIJING1134, can be read at the Wiki-leaks site… I don’t think I can say much more about this except to say that in the cable, it is acknowledged that China is buying and hoarding Gold as a way to lessen the value of the dollar.


.And in China… they didn’t like the SNB move either! Li, Daokui, an influential economist and advisor to the Chinese Central Bank, said that the SNB move was “like drinking poison to end thirst”…

Ok… stop the presses! Gold has just dropped $30 in a heartbeat! What in blazes is going on here? Is this more price manipulation? Come on… demand is still so freakishly strong for Gold, that it couldn’t be Mom and Pops deciding to sell their Gold all at once at 5:45 in the morning! And the drop in price is gaining strength with Gold down now $35… I shake my head in disgust… total disgust I might add!


Sep 9, 2011 - 11:57am

I could see a market crash coming....

The obvious fundamentals of the financial world being screwed + the G7 meeting to discuss this very fact = The time has come (or is near).

Technicals on the daily chart showing it too. Considering the fact that these markets are all algorithms these days, it could get ugly in a hurry.

And remember how we got to these "elevated" levels by the phantom algorithm illusion..... talk about great fundamentals! The bottom chart is measuring accumulation of shares during the rise of the S&P. That makes a lot of sense... no?

Sep 9, 2011 - 11:58am


Copper getting squashed. FCX is getting pummeled. Anyone see this as a dip to catch?

ericplatham Tom L
Sep 9, 2011 - 12:00pm

$1860 @Tom L

Gold just pulled a Konami Contra move

↑ ↑ ↓ ↓ ← → ← → B A select start

Nick Elway
Sep 9, 2011 - 12:01pm

@ipreferPHYS FCX is getting pummeled

I'm still bleeding from the last time I tried to catch the FCX falling knife. No Mas!

Tom L
Sep 9, 2011 - 12:04pm


I see a breakdown of the current uptrend channel on the daily chart. There might be a move on general market weakness back to the double bottom at $3.85. I wouldn't buy Cu now until it gets back in that channel at around $4.07.


Bay of Pigs
Sep 9, 2011 - 12:06pm

The Morgue

Nice looking price action there. Couldn't happen to a nicer group of people.

Burn you f*ckers. Or better yet, jump.

Sep 9, 2011 - 12:15pm

JPM = Body Bag da do da

Coal Chamber - Sway
Sep 9, 2011 - 12:17pm
Sep 9, 2011 - 12:18pm

Obama's jobs plan paid for? Seems not

So apparently AP did some investigative reporting [Wow... you mean they still do that?] and the new O'Bottom plan is not as paid for as claimed. (New plan=Ctrl+P)

...THE FACTS: Not all of the president's major proposals are likely to yield quick job growth if adopted...

...THE FACTS: Obama did not spell out exactly how he would pay for the measures... ...White House aides suggested that new deficit spending in the near term to try to promote job creation would be paid for in the future - the "out years,"... [Yeah, right!]

Sep 9, 2011 - 12:20pm

2001 should've told you there will be no market crashes

And that's why I stopped shorting stocks. They will always prop up the stock market with more printed money. This is like the '70s on steroids - it's going to griiiiiiiiiiiiiiiiiiiind out sloooooooowly. I'm sure there were people who successfully played the short side during the '70s and I'm almost positive that there were also many more dead bodies of people who tried and failed.

Suits me now. Shorting is hard work. Making money going long a bull market is easy mode.

Sep 9, 2011 - 12:21pm

All In

FWIW - I have decided to go "All In" before the weekend (phys funds and miners, a little more brent). I was out big time last weekend and hardly anything moved, but the week was a slow burn. I'm doing OK except for TBT and MOO.

I just think that this is the time to go all in on PMs - even more so than usual - because the punch downs were so blatant and the Wikileaks post on China may capture the attention of many.

I still have enough cash for the next 2 months of expenses and, of course, a stash of PM in my hot little hands. Wish Me Luck.

Sep 9, 2011 - 12:22pm

Gold says : Us dollar rally

Gold says : Us dollar rally is BS

I hope those who bought those recommended FXE puts HAT TIPPED TURD!!! Your having a great run!



flying monkey
Sep 9, 2011 - 12:23pm

Ranting Andy's latest

Ranting Andy: The Agony of Defeat – For the Gold Cartel I love these rants.

Sep 9, 2011 - 12:29pm

wikileaks - 09Beijing1134


"China increases its gold reserves in order to kill two birds with
one stone"

The China Radio International sponsored newspaper World News Journal
(Shijie Xinwenbao)(04/28): "According to China's National Foreign
Exchanges Administration China 's gold reserves have recently
increased. Currently, the majority of its gold reserves have been
located in the U.S. and European countries. The U.S. and Europe have
always suppressed the rising price of gold. They intend to weaken
gold's function as an international reserve currency. They don't
want to see other countries turning to gold reserves instead of the
U.S. dollar or Euro. Therefore, suppressing the price of gold is
very beneficial for the U.S. in maintaining the U.S. dollar's role
as the international reserve currency. China's increased gold
reserves will thus act as a model and lead other countries towards
reserving more gold
. Large gold reserves are also beneficial in
promoting the internationalization of the RMB."


Sep 9, 2011 - 12:31pm

Let's take a look the POSX

Let's take a look the POSX here. The 76,50 level that's been so much talked about as overhead resistance has been blasted through. The POS is now at it's highest in 6 months. Also of course it's significant that it is moving in tandem with gold and silver.


Edit: Lol Pining.

Sep 9, 2011 - 12:33pm

One of my chief concerns

Is when the elite start to lose, they just change the rules.

Sep 9, 2011 - 12:34pm

Seems about right

I rarely post a vid during a trading day but this seems about right.

TF mentioned "The Battle Continues" and even the Swiss have joined the currency war. Now it's the Yen's turn to respond in kind. While the POSX grows temporary muscles and the Euro withers on the vine going into this weekend, what must Bernanke and Geithner be planning?

It looks like a ....

Ted Nugent-Free for all
Sep 9, 2011 - 12:38pm

Yahoo headline

"Stocks plunge as worries intensify about Europe"...*scratches head* Wait a second, yesterday it was "Stocks rally as worries ease about Europe ".

Chicken Little
Sep 9, 2011 - 12:38pm


I am a real newb at this, so please feel free to correct my logic or lack thereof.

I attribute the steep rise in the POSX to the drop in equities. When the equities sell off big time, like today, the settlements are all in greenbacks and thus there is a large demand for the dollar. The harder the markets dive the faster the POSX rises.

Regards, Chicken


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