$3 BILLION Fraud?
A Second MAJOR System Breakdown RED FLAG Just Occurred in the Gold Market: 

After trading as high as $18.60 and $1298 early in the week, gold and silver pulled back Wednesday.
Gold is down $15 to $1278, and silver is down 50 cents since Monday to a low of $18.10.

Weakness in the metals is being driven by a rally in the dollar off of recent lows.  Unsurprisingly, today’s dollar rally found resistance at 99.9.

Keep an eye on the USDX in the days ahead for clues to the direction gold and silver is headed over the short term as the 100 level has now become resistance.

Perhaps more notably, gold witnessed another highly suspicious event during yesterday’s London fix.

$3 billion notional was dumped onto the paper gold market moments before Tuesday’s London fix, resulting in an $8 haircut on the price of gold…which promptly gapped up $15 above the rigged fix price once the London fix was completed: 

As we referenced in last week’s Metals and Markets, this is a huge red flag that could potentially be signalling a Mega Move in gold. 

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  1. One of the things that investors mention frequently in regards to moving markets is something that acts as a “catalyst”.  IMO, the only catalyst that I can see that could really move the market is Asian gold buying.  As long as there is a supply of cheap gold at suppressed prices that can be fed into the insatiable Asian gold market, all will be well in terms of maintaining the current status quo of the manipulation game.

    But if the supply of gold, and perhaps silver too, shrinks to the point that Asian buying demand is not easily satisfied, we should start seeing prices bid higher in Asia and perhaps much higher.  Such is the tightrope that the manipulators walk.  They have to keep gold prices low to support the US$ and other fiat currencies but not so low as to jeopardize the survival of the gold miners.

    If prices were to be pushed below the cost of production, we would start seeing miners cutting back on their production and perhaps even shuttering mines.  That they cannot allow to happen, so what we should see going forward will be gold limited to a trading range of perhaps $1000-1300.  At these prices the miners can barely survive and that’s about all that TPTB want them to do, no more and no less.  This seems to be their “sweet spot” in terms of meeting their goals.

    But it is always possible for events to over-run even the best of plans.  Mine production shutdowns due to inadequately funded maintenance programs, nations containing gold mines raising their taxes and royalty payments, even earthquakes, landslides, and floods that damage mines and knock them out of production at great expense to the companies that own and operate them are all possible and not at all easily controlled or remedied once they occur.

    Speaking of which… whatever happened to that huge open-pit mine in Utah that had the huge landslide about 4 years ago?

     

    • China needs lower prices so products they exports that contain the metals can be marketed and sold worldwide. They funnel metals thru the SGE and then distribute them to their large industrial and manufacturing base and large wholesale jewelers. They do this with placing a 17% VAT on metal imports that do not flow thru the exchange and of course their twice a day metals fix or auctions.

    • Total nonsense. It was the hedge funds that added more shorts. They were moving price between the two reversal levels at 1240 and 1272 depending on dollar strength or weakness. Before price was bouncing between these levels the funds were consistently moving price to around the 1300 resistance level before adding more shorts. With short term dollar weakness they were able to drive price back to where before adding shorts? The 1300 level where price reached 1298 and as predicted added their shorts.

      Trump is correct on the US needs a weaker dollar and so does the world. A strong dollar hurts US banks that have lent trillions in dollar denominated loans to foreign entities and these are difficult to service. In addition this hurts US exporters especially commodity exports making their products too expensive in foreign markets. A strong dollar hurts world trade and that is exactly what we have been seeing.

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