by Dave Kranzler, The News Doctors:
It’s becoming monotonous. The precious metals get the obligatory price hit at 6 p.m. EST when the CME’s Globex electronic trading system re-opens after taking about an hour break from manipulating markets. Then gold/silver rally throughout the eastern hemisphere trading hours, which wind down around 3 a.m. EST. And then gold begins to fade going into the manipulated London a.m. gold price fix. It typically trades laterally until the Comex gold pit opens (8:20 a.m EST), which is when we get the customary “cliff dive” price drop:
For 15 years, I have been unable to understand how only the gold investing commnunity – aka “goldbugs,” or just “bugs,” as Dennis Gartman refers to it – seems to discern this daily ritualistic trading pattern in the price of gold/silver. Funny thing, that.
It’s confounding to consider that the regulatory authorities have been able to spot and prosecute interest rate manipulative activities by several banks – LIBOR Rigging – many of these banks are also considered “bullion banks.” Larry Summers updated and augmented Gibson’s Paradox by demonstrating that interest rates could not be manipulated without manipulating the price of gold – Gibson’s Paradox and the Gold Standard. How is it therefore possible that the bullion banks, who manipulated LIBOR and who were involved in the London Gold Fix, were able to accomplish the former without engaging in the latter? Let’s call this Kranzler’s Enigma.
After this morning’s obligatory Comex floor opening price hit, gold bounced back in “V” formation. I emailed GATA’s Bill “Murphy” Midas to discuss the trading action, noting that “something is different.” This “V” bounce has been occurring quite frequently since mid-December. Historically, once the Comex price-spanking occurred, the trading day for gold traders may as well have been over. But for some reason the gold cartel banks have been unable to keep their boot pressed on the throat of the gold market.
One other point. Many of you may have noticed that GLD and the Comex have recently been reporting a large increase in gold vault inventory. As I said to Midas: “I’ve noticed in the past that a build-up in reported GLD inventory seems to precede a smash. But it’s been “building up” for a while and no smash. All hits are being bought.
Not sure it means anything, especially if the gold that is being reported in the warehouses at the Comex and GLD exists only as accounting entries, which is very possible if not highly probable.”
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