Bill Murphy writes........................From Lemetropolecafe.com
A tale of two writings. First, some commentary from early this morning:
For a change of pace, I shall get off of the Groundhog Day routine and shift it to the broken record one. For almost five years now Café members have routinely heard me report that Goldman Sachs was the major seller for The Gold Cartel at key points, taking on all comers. Same drill today. What is aggravating is that in all these years no one else reports on this blatant price-capping activity by Goldman.
As usual these days, we also see initial weakness starting in London. Once "the gold buying group" showed up in the US, the cabal shifted part of their market influencing routine to Britain.
Gold came in lower in the US, but rallied on horrendous jobless claim numbers. Then Goldman Sachs, along with Morgan Stanley, went into action. Simultaneously the dollar rallied, as did the stock futures. Made no sense whatsoever. Even the US trade deficit widened a bit to slightly over $40 billion.
Today’s attack by Goldman Sachs was not unexpected. They capped the market at $383 on Tuesday and then followed through on the downside, bringing locals along with them in a successful effort to fill the gap left below on the breakout. Breakaway gap is no more. It has been filled. The low of the day was $374. This only means the real breakaway gap is still ahead of us.
Time out!
Gold rallying sharply. Stop the presses!
Comex gold now closed.
A very dramatic day. Gold was clocked for nearly $6 in the early going by the crooks, yet stormed back, going up $1 at one point. Of course, its "Patriot’s Day" so gold was not allowed to close higher. George Orwell must be smiling up there as the market orchestrators in the US do what is best for America. Tell Americans that in a year or two when everything has fallen apart and their money is gone. It won’t be Hail Wall Street. It will be Go to Hell Wall Street.
Back to gold. Despite the "paint the tape close" it was a remarkable and very positive day for us. Gold rallied sharply with the stock market moving a good deal higher while gold was still trading and the dollar remaining on the firm side.
Today’s impressive recovery under extreme cabal pressure was a warning to gold shorts. Stay that way at your own peril. In years past gold would have closed $10 lower on a day like this.
The gold open interest rose again yesterday to a new high of 287,090, up 3765 contracts. A lot of big money wants in.
Today’s action was very supportive of MIDAS’ notion there is a Stalker ("gold buying group") out there taking the corrupt Gold Cartel on. They waited for Goldman Sachs to strike, then attacked, sending gold $7 off its lows. Dramatic it was. This is a big deal. Other traders will see how easily gold came back after filling the gap and will encourage them to get long, especially since the gap was filled. The huge open interest also suggests a significant move is coming. Gold’s startling comeback suggests that move is going to be one which takes the price MUCH higher.
One other key point. By taking gold back so abruptly on the day, The Stalker kept other long black-box tech funds in the game. Many of these funds will only liquidate based on closes. This close would have more adding, not dumping their positions. Also, once again we see gold close well off its lows, closer to its highs in this case. This sort of price action is not going unnoticed by the heavyweights out there in financial land.
Silver was steady all day, even as gold was trampled. Then, it took off to close in new high ground. It would appear those two little "ditties" brought to your attention yesterday could be very important clues, ones telling us silver is about ready to ROAR! Today, the DEC/DEC spread collapsed again, trading at a one cent difference at times. It settled at two cents. However, the DEC is trading at par with March. Formal backwardization may be only days away.
Got another "ditty" for you. The SEP silver open interest went up 126 contracts yesterday from 800 to 926. Rarely does that every happen two weeks into a delivery period. It says someone wants to take delivery of the silver and they are going to the Comex to get it.
This noticeable tightening of the silver spreads and sudden rise in open interest in the deliverable month suggests silver FIREWORKS are close at hand!
The silver open interest rose 1603 contracts to 111,101.
Thus far it is silver with the breakaway gap:
https://futures.tradingcharts.com/chart/SV/C3
Gold ready to move higher again:
https://futures.tradingcharts.com/chart/GD/C3
From The Café’s man in the gold options pit:
Very simply, the order flow is bullish.....what is still amazing is that the way upside calls are still cheap.....seems like the whole world thinks we are going up 50 bucks and that's it....god forbid something happens and Gold has a multistandard deviation move to $500 in short order, we will have a derivatives nightmare....that I will guarantee....
There is some talk about vol trading lower upstairs than it is on the floor...perhaps the big banks need some options premium and aren't willing to big it back for their normal small vig.....
As far as today's action in the futures goes (and I know nothing about technical analysis), anyone who is outright short this market is out of their minds....With all of the supposed weak longs out there, the market bounced nicely off the lows.....
-END-
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The latest from JP Morgan Chase and the disinformation world of The Gold Cartel:
JP Morgan ups 2003 gold forecast by 6.5%
Wed September 10, 2003 08:21 PM ET
LONDON, Sept 11 (Reuters) - JP Morgan Precious Metals said on Thursday it had increased its forecast for average gold prices for the next three years due to a combination of bullish factors that have burnished gold's allure and attracted new investors.
The annual average price forecast for 2003 was raised 6.5 percent to $362 a troy ounce, while its estimate for 2004 was increased to $376 an ounce from $335 and in 2005 to $368 from $345.
"Behind the upgrade lies the common theme of the realisation of renewed global economic growth. But also we feel that geo-political stimulus is playing a greater role than we had previously envisaged," Nick Moore, head of commodity research, said in a report.
In early July, JP Morgan said it was leaving its forecasts unchanged for gold, preferring to wait for further clarity. At that time, Moore said on balance the risk remained to the downside.
Moore said on Thursday that substantial producer de-hedging, contracting mine supply, increased interest from non-traditional sources, gold's inverse relationship with the dollar and ongoing geo-political uncertainty had all led to a renaissance in gold's role as an investment.
"We believe that we have been seeing a genuine re-rating of attitude towards gold, which is being given a helping hand from the re-allocation of funds from the previously vibrant bond market," Moore said.
A breakdown in some established economic relationships between gold and other factors was also a sign of strength.
Gold has strengthened recently despite a generally stronger U.S. dollar and has shown solid price growth in the face of a record long speculative position on New York's Comex gold futures market.
Bullion prices have also held strong despite evidence of a U.S. economic recovery. Normally, defensive investments such as gold would weaken as investors switch back into other assets, such as equities.
Risks remain however, with prices seen coming under pressure from renewed central bank sales or rising interest rates which could encourage fresh producer hedging.
Bond market allocation would be an important factor.
"A key issue for gold seems to be the huge size of the bond market $13 trillion vs. about $100 billion for gold-listed securities. Hence only a small switch of funds out of a bond market...could have impact upon gold," Moore said.
"On the flip side, a bond rally could return some funds to this sector and deliver a sell off in gold."
JP Morgan also raised its long-term gold price forecast, which it defined as the minimum level required to encourage new mine production, to $350 an ounce from $330.
The main factors behind the increase were the higher level of commodity currencies (South African rand and Australian dollar), higher energy costs and falling grades at existing mines.
-END-
Once again we see Morgan come out with drivel. Are they the dumbest bunch of analysts in the financial world? We are two years into the bull market in gold and they have been bearish all the way up, wrong all they way up. This report came out this morning with gold at $380. So they have upped their forecast, but are still bearish for years to come.
Are they that inept? I doubt it. More likely, they were told what to write from higher ups, from the senior people orchestrating the gold rigging operations. This way Morgan is covering their butt a little, but still not suggesting anyone buy gold or the gold shares.
Morgan and Goldman. Morgan and Goldman. Been my rant for five years. Never changes. When are the regulators ever going to wake up. Answer: never. At least, not until gold explodes and problems develop.
Bad news for the cabal. Information that gold supply continues to go down is surfacing once more, just as The Stalker is taking them on. The Gold Cartel is getting caught in a squeeze play. Demand for gold going up with gold supply going down. The only way to keep the price from soaring is to come up with more central bank gold, but that supply is becoming harder to come by. They are running out of deliverable goods.
The incredible rise in the gold open interest is no fluke. For sure, this "gold buying group" knows what GATA knows and is taking on the increasingly vulnerable shorts.
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Mine supply on the wane:
JOHANNESBURG, Sept 11 (Reuters) - South Africa's gold output slid 7.1 percent from a year ago in the three months to end-June 2003 and edged up 0.7 percent to 92,981 kg from the previous quarter, the Chamber of Mines of South Africa said on Thursday.
For the first six months of the year, the chamber said, gold production declined five percent to 185,295 kg. –END-
Barrick continues to stink up the place and is contributing to gold supply problems:
Barrick sees fall in 2004 gold output (ABX) By Myra P. Saefong
SAN FRANCISCO (CBS.MW) -- Barrick Gold remains on track to produce between 5.4 million and 5.5 million ounces of gold for 2003 at an average cost of $190 to $195 per ounce, CEO Greg Wilkins said at a the Merrill Lynch investment conference in Toronto. Production for 2004, however, will likely be 10 percent lower and costs will likely run around 10 percent higher because several of the company's (ABX) key operations are mining lower grade material, he said. Shares of Barrick are down 11 cents at $20.33. –END-
I wouldn’t own Barrick if you paid me. Funny how their problem is helping our camp out, just at the right time.
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We could be very close to some serious gold and silver fireworks. Why:
*The silver breakout accompanied with documented evidence the silver market has become very tight.
*The dramatic gold comeback. The desperate cabal did all they could to keep gold from closing up on the day. Volume in the last half hour was a staggering 20,000 contracts according to John Brimelow. Had the corrupt ones not throw the kitchen sink at gold, it would have closed up $5. They stopped it today, but not for long.
*The very late surge in the gold shares was very impressive. Big picture, strong hand buyers jumped in while the less informed sold.
*The Café Sentiment Indicator is only a 5.
*Put all together and it just might spell DYNAMITE!
GOT TO BE IN IT TO WIN IT!
MIDAS