smash-downThere was another interesting development last night. An exceptionally high 20,966 Comex December contracts were exchanged for physical (EFP). EFP transactions happen all the time, but this was a JUMBO deal. We don’t know the reason, which is most probably technical, but it could be linked to the sale of 10,000 contracts the day before.  Most exchanges would automatically initiate an inquiry to ensure that there is no market rigging involved in a $2.8bn deal.  Dream on…

fedIt’s easy to criticize the Fed for its failures, because its successes have been only one in number: kicking the can down the road.
But we should spare a thought for the difficulties policy-makers now face.   

So what would you do if you were on the Open Markets Committee?

RothschildThere are solid buyers on the dips who are not behaving like flighty hedge fund managers. Conventional investors are gradually coming round to the idea that gold should be included in their portfolios. This week, Lord Rothschild, chairman of Rothschild Investment Trust, revealed that the fund had established an exposure to gold of 8% of the fund by the end of June.
He is not alone…

poundThe fact that the Bank of England has is now going into reflation overdrive leaves the Fed isolated.
It is becoming clear that the major central banks are all very concerned over economic prospects.
And anyone observing the state of European banks must be acutely aware that they are standing on the edge of a deep chasm marked systemic crisis.

goldThe EU’s economic and financial trajectory is a genuine crisis, and the whole project is liable to collapse.  If so, Britain remaining in the EU would have amounted to a sacrifice of Britain’s relatively free trade values in the interests of the EU’s lemming-like self-destruction.
If the British or European economies tank, it will have nothing to do with Brexit…

gold barsBy any past measure, the futures market is wildly overbought. But will the speculating bulls win out this time?
There is a very good chance they will, but the danger of a market drifting lower while the bullion banks close their shorts is significant.

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: