Loading ...Bill,
After an extended “steady” phase the expected ceremonial flushing of the newbie spec longs took place today. A robust 9,414 contracts getting sold in the 4 minutes after the Crimex open did the trick. From there the Washington Generals were reduced to watching a cartel version of phi slamma jamma. With the all-important $1200 mark now within $5 it would seem another slam dunk is in order, that being sub-$1200 by June option expiration. Flushing more spec longs from here is little more than a formality. As is nearly always the case silver got crushed even harder. This was clearly an intervention. Contrary to gold and silver the Dow and S&P’s muted response to a dubious/bogus housing report was evidence of the need for MOAR equities and MOPE gold. I’m sure without even bothering the majority of cartel rules were fully in force today. The limits to which central planning occurs nowadays knows no boundaries.
Anything other than a lockdown on gold and silver for the rest of the month will be a VERY pleasant surprise. The script appears to say otherwise. Cue the Kitco idiocy, and the ostrich parade that delight in explaining it all away thusly: Gold Suddenly Finds Itself In Uphill Battle Against US Dollar Actually it isan uphill battle. The 100 trillion pile of dollars created out of thin air stretches all the way to Jupiter and back. That isn’t just an uphill battle; it’s a vertical ascent. One good puff of economic wind however and the stack blows down, and just as suddenly the need for any “uphill battles” for gold is eliminated.
JMc
No matter how many times this occurs, the clueless gold/silver world will refuse to go there. It is truly mindboggling.
Taking the understandable aggravation out of the picture because we can see what is happening, and we know who and why is causing it, today’s corrections would be normal in the context of general futures price action. Both gold and silver have had good runs to the upside with little setback. Thus, both were due for one. The resulting pummeling has done little to change the very bullish chart picture … as long as the downward move is quickly checked.