from TF Metals Report:
Lots of fun and games this morning as the “markets” attempt to anticipate what The Almighty Bernank may mutter later this week in Wyoming. Please try to maintain your sanity.
What a joke this all is. It’s the last week of summer for most folks and hardly anyone is watching. The Europeans are on “holiday” and the U.S. is anticipating the 3-day, Labor Day weekend. With no one around, it becomes literal child’s play for The Cartels to lead the spec algos around by their collective noses. Throw in some obtuse, end-of-week Bernank remarks and you’ve got a perfect setup for thin volume volatility.
I see that gold is being hammered lower this morning. Whatever. As if suddenly all of the holders of physical metal are desperate to unload it in exchange for fiat. All we are seeing is spec algo tripping. This shoves price lower and allows The Cartel to cover some of their recently-added shorts at a profit. How many new shorts were created last week and early this week in their vain attempt to contain gold below $1680? Well, if you can now cover those shorts at or below 1660 you make a tidy little profit for your desk AND replenish your ammo for defending 1680 the next time price surges back up there. It’s just a game and one that you should be using to your advantage. Buy all dips. Period. End of story.