Our friend TF from TFMetalsReport.com has released an excellent update this afternoon regarding the persistent cartel capping we have been seeing near $1780 in gold, and $$34.50-$35 in silver over the past 3 weeks.
TF states the cartel’s effort to keep gold under $1800 (and subsequently preventing a gap up to the nominal high near $1915) and silver under $35 (and subsequently preventing a gap up in silver to $37.50) is ‘about to blow up in their faces‘.
TF states the price capping of gold and silver has become desperate as once $1800 is taken out in gold, Paper price is extremely vulnerable to a quick, $100+ move but the banks can’t jack the price lower because of the continuing, robust demand for physical in London
TF absolutely nails the current gold and silver price action, as both metals are getting ready to explode once the cartel caps are breached.
What The Cartel doesn’t seem to grasp is this basic rule: “When you find yourself in a hole, the first thing you do is stop digging“. The stupid, arrogant jerks just won’t give up. QE∞ has long been predicted by The Turd, Santa et al, it was formally announced by The Bernank three weeks ago and it was confirmed beyond a shadow of a doubt just yesterday by Fed Goon Evans. Nevertheless, they just keep issuing paper metal at a frantic pace in a desperate attempt to cap price and contain it below $1780 and, ultimately, $1800. Why are these levels worth defending, you ask? Here’s a reminder:
And so, for the third consecutive day, we have seen aggressive capping of price at, or just above, $1780. Again I’ll use the word “desperate“. No doubt about it. There is some serious panic setting in. Paper price is extremely vulnerable to a quick, $100+ move but the banks can’t jack the price lower because of the continuing, robust demand for physical in London. What to do, what to do? Desperation, indeed.
And so then you get a day like today. The metals were unusually strong in the pre-open and looked poised to catapult higher once the Comex was up and running. Paper metal was thus gathered and dumped right at the 8:25 silver Comex open. Note all of the big, blue candles on the charts below indicative of direct attempts to keep the pressure on and rein in price.
But here’s the thing: They are almost of of time. The window is closing. You can clearly see it in the charts below. The trend is higher and once their little defense line runs into it (by Friday?), price will almost assuredly burst higher. Perhaps the BLSBS data on Friday will provide the impetus? Who knows? All I know is that this 3-week effort to cap price is about to blow up in their faces.