BREXITWhatever the outcome of the Brexit referendum next week, it would appear that nothing can stop a systemic crisis developing in Europe. The two issues are unrelated, though Brexit could be blamed as a trigger. Brexit will come and go, but a European banking failure will remain with us, whatever happens on June 23rd.

imagesThis card has been played successfully yet again, with the bullion banks first creating and then destroying nearly 100,000 contracts, lifting the profits from hapless bulls in the Comex market.
The fall in gold prices in May has less to do with a change in outlook for the gold price, and more with the way a casino-like exchange stays in business…

beach ballThe reduction in gold’s open interest on Comex, which has fallen nearly 110,000 contracts since 16th May, informs us that speculative positions worth $13.6bn have been extinguished, and the Comex market is no longer overbought.

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Alasdair Macleod Joins the Show From London for a Special Edition of Metals & Markets, Discussing: 

Doc, Dubin, & Alasdair Macleod Break Down the Action In This Holiday Edition of Metals & Markets: 

fedGold and silver had a down week, correcting some of their overbought condition.
It’s obvious that after a run up of $250 from the December lows, some price consolidation would be natural.
The consolidation so far has only been relatively minor, testing the 55-day moving average currently at $1250, with real support coming in at the $1200 level:

obamaPresident Obama weighed into the Brexit debate on his recent visit to the UK, saying that if Britain left the EU, she would be at the back of the queue when it comes to a free trade agreement.
As for T-TIP, it is an ugly acronym for an unworkable arrangement, and it should be consigned to the trash-tip of history’s failed projects.

dollar goldThe Fiat Money Quantity continues to rise at an accelerated pace, and now stands at $14.286 trillion
It would appear that this increase in bank lending indicates financial difficulties in the non-financial sector.
It looks like a condition of developing stagflation…

rocketSilver’s outperformance has the clear characteristics of a bear squeeze.
What is hidden from us are the off-market deals in physical, OTC and forwards, which on the basis of silver’s performance this week, indicates an overall shortage exists despite being overbought on Comex.