Tuesday, April 18, 2017

Another day, another manipulation as gold slammed with naked short contracts after dollar falls below 100 on index

As we at The Daily Economist have continued to say over and over in the investment space, there are no markets, only manipulations.  And whether it is the Fed offering trillions in cheap money for insiders to buy back their stocks, the Exchange Stabilization Fund buying S&P future and the Yen to trigger algo traders, or the bullion banks naked shorting the precious metal markets, the only way to trade in today's world is to go with the manipulators and not use technicals or fundamentals.

Thus it should have come as no surprise on April 18 when in a matter of seconds, a bullion bank dumped over $3 billion in naked short contracts at the same time the dollar fell below 100 on the index, and where gold was working its way towards $1300 per ounce.

While the dollar index tumbles to its lowest level since days after the electiom, someone decided this morning was an opportune time to dump over 22,000 gold futures contracts (almost $3 billion notional) sparking a quick plunge in the precious metal. - Zerohedge
Interestingly, the short position at the Comex had actually fallen to its lowest levels since the elections as gold and silver crossing over their 200 day moving average spelled a strong buy signal for the commodities.  But with today's dumping, short contracts are back up to over 68,000.

(and add 22,000 to the April 11 number)


Do the manipulators tten enter the market and buy cheap physical gold as a consequence of their manipulation in the paper market?

JP Morgan has... that's why they have an accumulation of 800 million ounces bought at depressed prices.

Then if the manipulators choose to hold the physical gold that has to be iron clad proof
that one day, when all else fails, then gold will soar.
The Chinese, Indians and Russians who are currently big buyers of physical gold
obviously have the same expectation.

Great blog post! I Second home don’t understand how long it will require me to obtain through all of them!

JP Morgan has... that's heating pad why they have an accumulation of 800 million ounces bought at depressed prices.

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