Bill Murphy writes .......................From lemetropolecafe.com:
The same low-lifes who have rigged the gold price for so many years and screwed over so many people showed up late today to knock gold down $4 off the highs. Gold was screaming with about a half hour to go, trading as high as $392.20. Enter the increasingly stunned Gold Cartel led by JP Morgan Chase. First, they went after silver, as they usually do, to telegraph to the locals what is coming next for gold. It is a subtle signal to these locals to join them on the sell side. Silver was gradually taken down to the unchanged level. Little by little, JPM whittled away at gold, finally cutting its smashing gain in half.
What continues to be so aggravating is these bums pull their same maneuvers over and over in the exact same fashion and almost no one comments on what they are doing outside of The Café/GATA camp. It makes me outraged that a group of institutions can repeat a trading pattern for so long and do not get called on the carpet for it. It’s ALWAYS the same rotating group in The Gold Cartel that knocks gold down at critical moments. ALWAYS!
The good news is they are losing gradually control. The bad news is until they are thoroughly whipped and carried out on a stretcher, our team will have not have won the day. This is the reason I have focused on CARTEL CAPITULATION WATCH for so many years. These arrogants are going to have to be forced to surrender before gold explodes. You have heard me comment that way for what seems like forever. The reason why should be very obvious to anyone following this documented running commentary for any length of time.
It is very heartening, however, to see the cabal’s doom in sight. By fiddling around with the US financial markets for so many years, The Gold Cartel and Working Group on Financial Markets (PPT) have created a Frankenstein-like market monster that is soon going to terrorize the financial world. Their Father Knows Best Orwellian type of thinking is going to wreak havoc on unsuspecting soles in the public investing arena who have no clue what is coming. The sooner the bad guys go down, the less the mess will be and the sooner US financial markets can get back on track. All we have had the past year (s) is one big illusion/delusion as they cap gold and prop up the stock market. One day it is all going to blow up!
The best news is that in spite of The Gold Cartel’s efforts to contain gold, it still closed at a 7-year weekly by $6.30, based on the weekly continuation charts. The old high was $382.90 set this past September 20th. Weekly high closes are very important from a technical perspective and can influence money managers significantly. This close will attract new buyers next week.
The gold charts could only have looked better if gold closed above $393.
Daily gold
https://futures.tradingcharts.com/chart/GD/C3
Weekly gold
https://futures.tradingcharts.com/chart/GD/W
Monthly gold
https://futures.tradingcharts.com/chart/GD/M
More good news:
The open interest only rose 2138 contracts yesterday to 256,719. It still remains about 40,000 less than a month ago when gold was at these price levels. This means there is room for tens of thousands of new specs to pour in on the long side before we even get to the old open interest highs. No reason we can’t make new OI highs again, which should take the price of gold above the $400 mark.
The dollar was only slightly weaker at 91.51, down .13 and a new low for the move. The euro gained .25 to 117.92.
Commodity prices continue to gain. The CRB popped .65 to 249.34, led by cattle (99.15) and feeder cattle (103.62), both up the $1.50 limit, and cotton, which registered a multi-year high of 83.11 cents, up 1.52 cents.
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The notorious bear Andy Smith in his weekly comment amplifies his concern that the skew in the option structure creates the possibility of a sudden spike in gold:
"This may be a bull, but it is now a rogue elephant"
Andy is clearly preparing entrenchments for a breakout,
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CARTEL CAPITULATION WATCH
The US stock market is a complete farce. Just as gold is sold off late time and time again by The Gold Cartel, the stock market manages to pull off one miracle late day rally after another. As has been the case all year, the US stock market is never allowed to close poorly more than one day at a time, if that, and is almost always brought back late in the day to diminish any kind of panicky selling sentiment among the investing public.
Hard to say which is more obvious these days, the gold rig or the stock prop? What I can say is free markets do not do the same thing over and over. Not for weeks and months at a time. This is an abomination which will end badly.
The DOW soared 100 off its low to close down only 30 at 9582. The DOG cut its losses in half, finishing at 1865, down 20. At one point it appeared the DOW and DOG would be crushed, but that is not allowed by The Working Group on Financial Markets these days. Unfortunately, my country is going to go down as one of the most hypocritical countries ever. We talk about free markets, free press and noble ideals. Yet, we rig markets, have no free press when it comes to serious financial matters, and start wars on false pretenses. Our greatness is fading fast and most Americans have no clue why. They have a rude awakening coming!
Houston’s Dan Norcini sums up the market action best:
Hi Bill:
check out the flagpole rally in the indexes beginning around 2:30 or so our time. That is not your typical end of week evening up process with guys lightening up on the day as they head into the weekend bit. I would venture to say the ESF boys had their corrupt hands full today trying to contain the damage. Between the gold pit, the dollar and the indexes, I wonder how much of our tax money they spent today trying to keep their deceit economics holographic image from melting down.
Dan
More from Dan after my email to him in which I decried my disdaining sentiments over the PPT and Gold Cartel to him:
I agree Bill. I do not think it is going unnoticed Bill except for the brain dead stock traders who follow the nitwits at CNBC and the other cheerleaders for Wall Street. The shrewd investors are aware of this as GATA has done too much quality work for them to ignore. The Asian interests who are literally stealing our gold away from us under our noses thanks to the idiocy and self-serving of Western elites and bankers are no doubt completely aware of it and are using it as a means to accumulate even more of our gold at lower prices. They are the ones who are winning the war even though the cartel wins a few battles now and then. The simple truth is reflected in the gold chart and the dollar chart. Those charts tell the whole story. Each setback for gold is lasting for shorter periods of time as you have so expertly catalogued. The drubbing gold received back on October 3 and the one of last Friday are already completely erased as if they never happened. Here we are sitting right back at the highest closing level we have had this year and it has barely been a week since the gold bears were blowing their trumpets with cries of "Hosanna" to their own wisdom. That is something for which those interests who have been accumulating gold and who continue to do so are responsible. They are serious buyers and are not going away and are not going to run. The open interest totals are no where near where they were back before the sell off when gold first touched 395 in September this year. That is simply astounding. Imagine where the gold price is giving once we even reach that same level of open interest as back then and it increases beyond that as more and more investors begin to pile in.
Best,
Dan
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Even Andy Smith is talking about a potential derivatives crisis these days. Of course, the GATA camp has been talking about a Gold Derivatives Banking Crisis for a long time. We presented our case to the Speaker of House Dennis Hastert, the chief economist of the Senate Banking Committee and to Representative Spencer Bachus, Chairman of the Sub-committee on Domestic and International Monetary Policy, along with 8 of his staff members. They all received our GDGC document which was 180 pages long. It didn’t do any good, but they were warned.
We do have a gold derivatives crisis coming. It is only a matter of time. Initially, GATA thought it would occur at lower prices, but from what I am hearing through the grapevine, the derivatives are likely to blow up if gold takes out $400. The stop out point for many derivatives players was moved above the key $400 level from lower levels. This is one of the reasons the cabal is frantic to keep gold from going through $400. It could create havoc in the financial world. Who’s fault would that be?
The gold shares closed in new high ground with the XAU gaining 1.84 to 98.70 and the HUI jumping 4.25 to 218.21. For the fourth session in a row, Golden Star Resources, led the HUI up gaining another 30 cents (5.78%) to $5.49. What a week! Congrats to CEO Peter Bradford and Treasurer Alan Mahter.
Whose to say what the bad guys are going to do in the short-term. We know they are desperate, pathetic and dangerous, like a cornered tiger. What we also know is we are winning and they are losing. Gold closed in 7-year high weekly ground and the shares closed in 7-year new high ground. World stock markets are on shaky ground, the dollar stinks and commodity prices are on a tear. The scorecard favors our team. Our personal equity and wealth are on the increase while their margin calls are going up.
Word is out around the world of The Gold Cartel’s predicament. The big money sharks are moving in for the kill, as advertised in this column for months.
GATA stretcher-bearers, please stay warmed up!
GATA BE IN IT TO WIN IT!
MIDAS