A Comex Gold Manipulated Hit Visualized

When a GATA delegation visited an editor for The Economist at his office in London in May 2009 to give him the gold price suppression story and the associated documentation, he could not get rid of us fast enough.   Chris Powell, Treasurer of GATA

Keep in mind that the primary reason the U.S. Government and Federal Reserve intervene actively in the gold market is to keep to keep the price from moving higher in order the protect the reserve status of the U.S. dollar.   Given that we know Russia and China are actively disabusing their foreign reserve holdings of Treasuries – quietly and now apparently more quickly – the dollar was in danger of breaching key technical levels to the downside and drop like a rock into the mid-70’s (USDX basis).   Janet Yellen saved the day with her non-transparent post-FOMC statement that suggested the possibility of higher rates in six months, which all know is total nonsense.  However, mission accomplished as her words managed to spike the dollar index back over 80 and now the Fed via its agent bullion banks are trying smash the price of gold lower to “reinforce” the move in the dollar.

This is what today’s action looked like:

(click on graph to enlarge)ComexHit

As you can see, there was a volume spike in the number of gold contracts that hit the Comex (both the globex computer system and the trading floor) right at 6:30.  The volume at 8:30 EST was 7.5 times higher than it was for the previous 1-minute period.

A little-known, barely followed economic report was released at 8:30 and the Ross Normans and Doug Caseys of the world would attribute the gold smash to the release of that report.  Of course, no other market responded to the release of this report except of course silver.  I’m not sure how Norman and Casey would explain that.

Suffice it to say that it appears as if the lower gold prices have triggered an increase in demand for physical gold in India and China.  Buy-premiums in India are up right now about 30% over last week and the premiums on the Shanghai Gold Exchange have moved back into positive territory after being negative for the past two weeks.

I think it’s a pretty good bet that this manipulated “pullback” in the price of gold/silver has just about run its course.  Anyone who explains this  sell-off action as a “healthy correction” is doing nothing more than issuing apologies for the corrupt market manipulations of the Fed and the U.S. Government.

 

23 thoughts on “A Comex Gold Manipulated Hit Visualized

    1. I stopped reading Rickards a couple years ago when I realized he was full of a lot of shit. He says some things that are credible but his gold color is either seeded in deception or ignorance. I believe it’s deception – consider his background.

      1. > I stopped reading Rickards a couple years ago

        I understand.

        He also said that Bundesbank asked for their gold but in fact they don’t want their gold back, they prefer to lease it (earning cash) and this leasing is the reason why will it take seven years.

        He seems serious.
        :)

      2. I agree Dave. Rickards is an idiot.

        Who has motive to suppress the PM price? Who has the power to suppress the price? The Federal Reserve. Who benefits? The USG, Federal Reserve, the dollar, bankers.

        That is all you really need to know. Everything else is so distorted it is indiscernable.

  1. I have never understood Doug Casey’s position on market manipulation. I can understand that he might be reluctant to acknowledge it. What I don’t understand is why he has always denied it. He could say that the precious metals markets could be manipulated but that he is not convinced of it.

  2. I dunno. It seems that as long as there is gold at the Comex, the price can be smashed down at will, and that’s all there is to it. If the Fed is behind the smash, it is not like they’re going to run out of money to do the smashing, and the losses they may “suffer” are just ink on paper and irrelevant.

    This will continue until the Comex runs out of gold, and there’s plenty more in the eligible category that can be transferred to registered. Could take YEARS before it gets low enough to be a real problem for them.

    1. Actually all that has to happen is for the world to call “No Mas” on the USD as world reserve currency. Gold will go 5 figures in a heartbeat.

  3. The Eurodollar chart is preparing for a massive price decline= rates big jump coming

    http://peterlbrandt.com/bearishness-eurodollar-chart-emphasized/
    amazes me this pure chartist is capital Clueless aboutthe implications of not just a 5% yield, but a rapid rise into that 5%!
    the system can’t even handle a 4.25% 30-yr bond rate.

    The Dec. 2016 Eurodollar chart presently reflects a yield of 2.3% — half of the projected yield based on the charts. It must be pointed out that a Eurodollar yield of 5% is not the end of the world. In fact, much of the economic expansion of the 1980s and 1990s took place with short-term yields at or above 5%
    ———————————————-
    once again, it’s obvious the connected, crooked insiders know exactly wtf is going to happen.

    1. Only when it goes lower. A massive spike to the upside moving in the just and rightful direction and, by definition, cannot be evil. :)

      Seriously, though, dumping massive contracts all at once when the price is looking weak isn’t the actions of a seller trying to get the best price possible–it is a manipulator trying to force the price down. If you saw the same kind of thing in reverse, that would also be manipulation, but that sort of thing doesn’t seem to happen much, where gold is concerned.

      1. Yes. That’s how we know it’s a manipulated hit. The Fed doesn’t care about losing money on futures sales. It can print money to cover the losses. It’s the “cost of doing business.”

      2. There have been many instances where buyers overwhelm the sellers and send the price soaring with a large number of contracts bought up in a small window (i.e. 1-5 minutes) & sometimes even in the illiquid Asian markets when those crying manipulation whine the most… I even provided a recent example in my tweet.

        It probably is price manipulation, in that the large traders, hedge funds and bullion banks who can move the market use their size to push around the price toward technical areas where they know they will be able to cover, but it happens in both directions, so these articles suggesting that the drops only are part of a master plan to suppress the price are just ridiculous IMO.

  4. Good roundup of today’s hit Dave. But their blatant audacity is overextended enough to attract repercussions.
    And I agree with y’all, JR’s a very hard man to pin down.
    While I appreciated the interview, he ignores or understates key problems and overemphasizes others.
    Still, within the obvious (+ stated) context of his official background and growing public appearances, therein appears to rest some truth- if you use the contrarian indicators and read between the memes.
    http://inteligenciafinancieraglobal.blogspot.com/2014/03/jim-rickards-china-is-importing-gold.html
    And he just procured a Greg Hunter segment on You Tube after making the rounds elsewhere. Another sign of distress and SHTF? Is Wall Street owned?

  5. Russia expects investors to move up to $70bn (£42bn) of assets out of the country in the first three months of this year.

    The sign that investors are becoming nervous about Russia comes amid sanctions and tensions over Ukraine.

    Speaking to reporters on Monday, Andrei Klepach, Russia’s deputy economy minister, also warned of stagnant growth and rising inflation.

    He expects growth in the first quarter to be “around zero”.

    The Russian economy grew by just 1.3% last year, but Mr Klepach said it was “too soon” to talk about “a recovery from stagnation”.

    “There won’t be a recession, but there is a problem of stagnation: it’s length and depth,” Mr Klepach said.

    “Unfortunately the investment slump is continuing. I’m not ready to say how long it will continue.”

    http://www.bbc.com/news/business-26725905

    I wonder how geopolitical crisis will affect gold/silver. We may have a strong military (at home on fod stamps) but our fiscal sector can be easily damaged. The US lives in a glass house and Russia knows how to throw stones. Will they return fire for the sanctions we inflict on them?

  6. Barack Hussain’s Legacy: The Top 10 Greatest Achievements and lessons to the world

    1. As a result of his disastrous leadership we came to the realisation that an incompetent and socially irresponsible president should be dismissed like any bad manager. He reminded us that we have the right to demand accountability from our leaders, and an obligation to limit their power if the prime duty to serve and protect turns into a licence to harm. Side effect 1: Association with Obama brought his European allies record unpopularity and riots.

    Side effect 2: We love Donald Trump’s: “You are fired!”

    http://english.pravda.ru/opinion/columnists/24-03-2014/127150-barack_hussein-0/

  7. Hi Dave,
    Back in late January, one of your blog posts stated the top four banks controlled 1800 tonnes long position of paper gold on the comex. J.P. Morgan controlled over 60% of that total. Have these banks added to their long position since then? Where may I find these positions like you did? This is most important considering last year about this time. Thank you.

    1. I think since then the big banks’ overall net long position has declined but is still positive. I have not been paying too much attention to the data because I don’t trust it, necessarily.

      You can track the COT report here: http://www.cftc.gov/MarketReports/CommitmentsOfTraders/Index.htm

      You need to look at the “long form” because it breaks down the big category of traders into smaller categories. There’s also links to weekly historical data but you need a data program that unpacks the files, like Windows RAR.

  8. Rickards’ comment that the Bundesbank didn’t, in fact, want Germany’s gold to be repatriated for purposes of supporting gold price suppression strikes me as very, very odd in view of the fact that the primary reserve of the EURO appears to be gold MARKED TO MARKET. The EURO mark-to-market valuation is done on a quarterly basis, Eurozone gold reserves being given apparent primary importance (on Line One, so to speak). So it seems the EURO was established with the idea of being a currency both untied to any particular nationality AND unlinked to gold, the intent being to permit gold price (hence reserve value) to be determined by market forces entirely independent of government and banking influence. Why then, would the Bundesbank wish to further suppress the price of gold and continue supporting the oppressive, exploitative reign of “KIng Dollar”? It would seem that a vastly higher, revalued gold price, while disastrous to the Dollar, would greatly benefit all members of the Eurozone.

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