Friday, June 8, 2018

Gold price so controlled and manipulated even the chaos of the G7 meeting can't move it out of right range

In what is likely to see European leaders move even further away from the United States this weekend during the G-7 meeting in Quebec, it is fascinating to see how the chaos of tariffs, trade wars, and economic sanctions can't even move the gold price more than $.10 on Friday.

Gold has been in a very tight range over the past 25 days, and validates how the central and bullion banks have the price under extreme control in the face of political (Italy and Spain), financial (Deutsche Bank), and geo-political (Trade War) events that in the past would have seen the price soar between $50 and $100 to the upside.

Friday morning saw spot gold remain steady at about $1,298 per ounce despite growing geopolitical strife over trade. 
The silver price rose 7¢ (+0.45%) to $16.75/oz, consolidating its recent gains. 
Both platinum and palladium were little changed at $902/oz and $1,008/oz, respectively.
Even news that the Swiss government was going to allocate 2% of their pension fund into buying physical gold has done nothing to move the meter on the precious metal's price.

If capitulation in the gold markets hasn't yet been reached, then there is certainly not far to go for the sector.


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