Our friend Turd from TFMetalsReport who has made several extremely accurate long-term bottom calls in the past has called a bottom in gold at $1525-$1530.
While ‘Turd’ is confident a bottom was placed yesterday in gold, he states that it is entirely possible the cartel will attempt to engineer one last smash in gold possibly as low as a 14 handle- entirely outside of the London fix hours.
This would enable the bullion banks to accumulate as many new longs as they can possibly induce the specs to puke, while preventing physical metal from leaving the cartel en masse should gold be available in the $1400′s at a London fix.
Yes, 1525-1530 is The Bottom. This does not mean, however, that The Gold Cartel will not pick an opportunity to pull their bids and allow the spec shorts to guns the stops below 1525. This could very easily happen and you could see it unfold between London fixes, which is a 19.5 hour window of opportunity.
What I mean is this: Let’s say we get a London pm fix someday soon (10:00 am EDT) at $1540. You get selling almost immediately that accelerates into the Comex close and is aggravated on the Globex and in early Asia trading. Stops are triggered are price falls rapidly on light volume to 1500 or even something that begins with 14. Suddenly this reverses and, before the London AM fix (5:30 am EDT), price is back UP to 1540 and it’s as if nothing ever happened. What has happened, though, is that sell stops were set off and The Cartel was the buyer on the other side. The key determining factor of whether or not this event will play out is the total size and scope of the accumulated sell stop position at and below 1525.
If The Gold Cartel needs some new longs to lessen their risk and the stops are there in sufficient size for the harvesting, the likelihood of the scenario above playing out is high.