Gold and silver are selling off during early Monday Asian trading, which was expected after Friday afternoon’s announcement that a Federal District judge had struck down the CFTC’s position limits rule, scheduled to go into effect Oct 12th.
Silver gapped down on the 6pm EST globex open, and has continued to sell off nearly continuously in the Asian session, down to $34.28.
Gold is down a more modest $5 to $1765.
As we mentioned Friday night, the ruling explains why the commercials (cartel) have continued to massively increase their net short positions, adding another 6 million net shorts in silver this week, to a massive 258 million ounces net short!
Clearly the judge’s ruling was leaked to the bullion banks well ahead of time, and thus the bullion banks continued to fearlessly add new shorts to both gold and silver to stifle the current rally. Had the cartel not been able to so drastically increase their shorts over the past month, we would surely be already looking at new all-time nominal highs in gold above $1920, and silver would likely be in the $40′s and ready to re-challenge it’s all-time nominal high of $50.35.
Gold also selling off early in Monday trading.