As of this morning gold has suffered another premarket attack with about 10,000 contracts dumped on the market. Gold will bottom once the few big players controlling price cover all their shorts and get full positions long. It doesn’t look like they were ready to do that on Dec. 3 so we may have one more attack coming before they release the market to deliver the next bear market rally.

31 thoughts on “GOLD UPDATE

  1. AlexP

    it wasn’t an attack on gold. It was a pre-market shakeout on USX above its 50dma and gold market responded as it knows – by mirroring USX.

    1. Gary Post author

      Except gold doesn’t always mirror the dollar. I actually think the dollar has very little to do with the direction of gold other than it is a little easier to push gold down when the dollar is rising. But as you can see in this chart gold can rise along with the dollar.

      1. AlexP

        yes, indeed, Gary, but such periods are of short and of exception.
        In this case that you indicate it was driven by heavy central banks’ buying, so that one can say that gold’s rise was a demand-driven phenomenon which TEMPORARILY broke the negative correlation between the two.

        1. Gary Post author

          If it was the dollar driving gold then gold would still be above 1150 as the dollar hasn’t made new highs.

          There are simply too many fines being being levied and too many investigations into the manipulation for there to be any question anymore that the gold market is an artificial market being driven by a few big players. And when it comes to the financial sector then you know this is only the tip of the iceberg. We are only seeing what they will allow us to see.

          Basically it is the cost of running an almost no risk business. They have to pay a few slap on the wrist fines to earn billions manipulating the market.

        2. AlexP

          ….if I remember well, year 2014 was the 2nd largest of central bank activity in the last 50 years or so !!!
          It would not be surprising to find out that that central bank buying spree actually accelerated/concentrated mostly in the last part of 2014 😉

  2. mm

    Bottom line gold and metals are toxic …. have been for years and no reason to believe there isn’t more years to come. Gary you sound like the manipulation is going to end soon. I guess after years of a downtrend it becomes more likely but not definite.

    1. Gary Post author

      I think it will end sometime this year. They have already created one of the most destructive bear markets in history. I predict that some time this year we will get that violent rocket shot out of one of these intermediate bottoms that will signal the manipulation has been broken.

    1. Gary Post author

      I really have no idea how to predict where the banks are planning to cover their shorts and let the next rally begin, and neither does anyone else. Charts, cycles, sentiment are all useless in this market.

      Unless one has inside information as to where the banks are going to cover and go long its going to be next to impossible to time perfect entries.

      This is why I said in my last video to just watch the weekly stochastics. When it gets oversold that’s probably close enough to get long and then sell when it gets overbought.

  3. michael michaels

    Hello Gary,it seems some still do not believe their is manipulation and expect all kinds of answers from you as to why when etc. As we are at the mercy of the bullion banks doing the Feds work how on Earth can we know what they will do tomorrow. At some point they will lose their grip as next year there is a good chance markets will roll over and punters will be looking for a new home for their wealth.

    1. Gary Post author

      I have been very clear. Buy when the weekly stochastics get oversold and don’t try to trade every wiggle. The banks will just fleece you.

  4. michael michaels

    Ok Stevie, this from 2006.

    Over to Sid and his referenced evidence: In a 1998 testimonial to the House Banking Committee, former Fed governor Alan Greenspan said: “Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.”

    After the price of gold rallied strongly post the Washington Agreement, Bank of England governor Eddie George said on record: “We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

    In 2003, in order to have a case thrown out of court on the basis of “central bank immunity”, mining giant Barrick Gold admitted that it, and its banker JP Morgan, had manipulated the gold price as agents of central banks.

    In 2004, the chairman of the Central Bank of Russia said “major banks” are suppressing the gold price.

    In an example of the numbers just not adding up, the Bank for International Settlements (BIS) recorded a 16% increase in the notional amount of gold held in derivatives in the second half of 2004, representing 2700 tonnes. At the same time Golf Fields Mineral Services (GFMS) noted gold producer hedging had fallen 11%. The World Gold Council, and GFMS, insist all gold derivative transactions are legitimate producer hedges or hedge fund activity. Hedge funds accounted for one tenth of the increase. 2700 tonnes is more than the total supply of gold in 2004.

    In March this year BIS admitted manipulation.

    1. mm

      A good reason not to have 1% of your portfolio in this crap let alone 10%. And, they are only going to get more desperate to keep it down. Gary thinks this is the year they let gold go up. What reason would they have for that? There is even more need to drive it lower in 2016 … ie yuan, petrodollar threat.

  5. Johan

    If gold is manipulated they are really doing an amazing job of manipulating all the other commodities down too. I presume it wouldn’t look good if only gold went down and all the others up.

    So very impressive manipulation all around I’d say.

    1. Gary Post author

      As I explained in a previous video the take down in gold was the initial strategy to prevent the commodity markets from spiking when QE3 began. Otherwise they risked repeating the same mistake as 2008.

  6. David Silver

    Crude pivot point 36.31 bears destiny:
    Last week’s bullish report held
    Today’s besrish report holding thus far
    The key is in the CRB trading just as the Nasdaq’s bullish confirmation two weeks ago
    1059.10 pivot point tells destiny

  7. Gary Post author

    I’m going to suggest traders are just chasing their tails trying to pick technical turning points in the metals. These are meaningless. Gold will turn when the banks are ready for it to turn and no technical level is going to have any bearing on that.

    Once they have covered their shorts and built their long positions then they will get out of the way and the next rally will begin.

  8. David Silver

    Amen to that Mr. Savage
    Crude making a triple bottom turn UP
    Holding crude, SA and NFLX for the trifecta
    All three sectors moving in tandem off their lows to UP

  9. Mark

    What you are suggesting is pratically the same hypothesis that Jim Sinclair thinks : those who have brought down the PM markets will be those that will boost PM markets. (i.e. The Bullion Banks!)

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