Intraday gold price manipulation (10 am ET)

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Just like yesterday, the CRIMEX is in lala land. Totally out of nowhere, gold fell right at the opening bell (8 am ET) :flail:
 
Looks like someone really wants gold back under 1650 and silver back under 30.50
 
YESTERDAY:
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Today:
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Look at the silver one hour Kitco chart. Same same.

It looks like someone is defending 34 against someone unloading paper. Just like yesterday only more volatile today.
 
It's all so unbelievably obvious. The CFTC knows what's going on... and nothing will ever happen.
 
swissaustrian said:
It's all so unbelievably obvious. The CFTC knows what's going on... and nothing will ever happen.
Click to expand...

At some point, and I believe that point to be well and truly overdue, we will see the result of decades of manipulation explode. When the true nature of the silver shortage is finally exposed through the failure to deliver metal and the accompanying forced payout in fiat [per the published covenants on the Crimex/LBMA] we will see fireworks travel around the world, and PM prices will find their true equilibrium.

When one looks at inflation over the years, and places silver on a graph with the historical prices and where it should be based upon simple mathematics, using demand stats and the rate of inflation, silver should be multiples of her current "price" higher.

Suffice it to say, when the shit hits the fan, us silver/gold bugs will be richly rewarded. As we all know, when prices move rapidly, there is nearly always overshoot. Just like the Hunt Brothers, I think silver will overshoot by around 50% of equilibrium, and I will be that guy, the one who sells three quarters of his holdings, sits on the bling, then buys back in after the mania subsides. That my friends, is when Ancona retires to the place in the Keys! :cheers:
 
Several credible sources have claimed that wednesday's takedown was triggered by a single seller who sold 31 tonnes of gold (futures) at once. Subsequently several stop losses got triggered and the massive $100 waterfall decline took place.
I've tried to research that and it seems to be true: The first seller dumped such a huge package on the market.
If you wanted to get rid of such a gigantic position, you wouldn't do it in one trade, because you fully know that you won't get an attractive price. So this definitely smells like intervention.
However, this was just the first seller. PMs were overbought anyway and speculative positions with tight stops had to wiped out irregardless. Right now, it seems like the market has been cleared somewhat and is positioned to continue the rally which started at the beginning of 2012. Two big hurdles are:
1. the DXY might go up for a while on EUR weakness, because the Greek default is rapidly approaching.
2. Oil and other commodities might drag down gold as well once the Iran fear trade is unwound.
 
Today is the very prototype of classical intraday gold COMEX manipulation which statistically starts at 8 am ET and lasts to 10 am ET. Witness how gold starts plummetting belwo $ 1700 immediately after the COMEX opening.

First today's chart
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Well.. the dollar is up about 1% so I can see the justification for algos selling gold into that. However, the fact bids came in and cleaned it up shows there was some strong hands down there. I still think the correction wont end till the start of april though, probably with making a nominal new low for the move.
 
As observed above, the rapid rise in the gold price started right after 10 am ET on friday (3-9). As we all know, this is when the London pm (post meridiem) gold fixing takes place.

Here's an interesting explanation for that:
Today 25 year veteran Gabelli Gold Fund manager, Caesar Bryan, told King World News the Southern periphery countries of Europe will experience a turbulent period that will be worse than the Great Depression. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Caesar also said physical buying in London helped turn the gold market around. Here is what Bryan had to say about the situation: “Well, I think the gold market was looking fine from yesterday. Then we had reasonable payroll numbers here in the US and that took the gold price down. But then we had a sudden reversal which is quite interesting. My understanding is the PM fix in London saw some physical buying and was fixed a few dollars higher than gold was trading on a spot basis.”
Caesar Bryan continues:
“Then there was some good follow through (to the upside). On a longer-run basis, we are sitting on the moving averages and gold is fine. We are in a bull market. We’ve suffered a number of nasty corrections since 2001. I believe we have had about seven corrections of over 20%. One of 30%, at the time of the Lehman crisis.
I think there is a tussle between physical buyers and players in the paper market and so far the physical buyers are having a little win today...
Click to expand...
http://kingworldnews.com/kingworldn...al_Buying_in_London_Reverses_Gold_Market.html

Full audio of the interview:
http://www.kingworldnews.com/kingwo...Caesar_Bryan_files/Caesar Bryan 3:10:2012.mp3
 
Now down $33... Quite a dump gold is taking!

I looked at the usual sites (Turd, ZH, kitco, 24hgold) and have seen NOTHING about why gold is down so much!
 
DoChenRollingBearing said:
Now down $33... Quite a dump gold is taking!

I looked at the usual sites (Turd, ZH, kitco, 24hgold) and have seen NOTHING about why gold is down so much!
Click to expand...

It's the news of the "stress tests" passing for all the US banks. Last 30 minutes of a thin market...
 
It is paper getting dumped on the market. Silver Doc reported that 100+ million ounces of silver paper was sold in sync with the FOMC and silver only lost fractions of a dollar in stead of dollars.
 
It started right at 2:15pm when the FOMC announcement was made...
I called it by the way :D
 
Looks like I picked a good day to ride rollercoasters with my boys (spring break mini vacation).
 
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Told you so! COMEX close was the intraday low...

:D

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Same for silver

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Maybe the options trader of JPM (the major pm options underwriter) unloaded his position into the COMEX close today. He needed a large position to manipulate yesterday's option expiry prices. Tommorow is futures expiry so it would also be great to "prepare" the physical deliveries on these April futures by lowering spot prices :doodoo: ...
 
Guys,

You MUST read that piece on Christmartenson.com, on the gold price manipulation. It is brilliant, short, to the point, and few quite striking charts:

http://www.chrismartenson.com/blog/gold-manipulated-thats-okay/72892

Note in this next chart that if one simply bought gold and held it only during the open and close of the US daily fix, one would have lost 70% of one’s money during the same period of time that gold rose in price by more than 500%.
(...)
For example, take a hypothetical gold investment fund starting with $100m in 2001, use it to buy gold only at the US AM fix and sell at the US PM fix until the present, and it would now be left with just $31 million, almost a 70% loss in just under ten years. Over the same time period, gold prices have risen over 590%.
(...)
Here we might ask a simple question: How is it possible that an asset that rose across all world markets by more than 500% fell during active trading in the most important market of them all (by volume) by 70%?
(...)
We can easily see the startling difference in the chart below. It compares the results of a simple 'buy and hold' investment in gold over the past ten years vs. a more active (and clever) strategy that both shorts gold during the daily hours and then buys gold long for the overnight session:
(...)
This strategy captures both the daily losses and nightly gains into a single, combined monster gain that has returned over 5,000% over the past decade with very few drawdowns, handily beating the price of gold itself by a factor of ten.
Again, how is it possible for a single strategy to be such a reliable winner without being competed away to zero? A very simple explanation is that an entity that does not care about potential losses simply and reliably sells gold into the daily markets.
Click to expand...

For me, it is best laid down explanation, and common-sense proof, that I've seen to date - but I must confess I am not following too many of them, since they are hardly relevant to me, and frankly, a lot of them doesn't really struck a chord with my reasoning. That one does, big time, it is such an "in your face" argumentation, that for me it is beyond any rational doubt.

Buy physical :)
 
Slightly off topic, but:
Chris Martenson said:
...
When a strong emotional response surfaces during a conversation of ideas, it usually means that beliefs are in play -- neither facts nor logic. Experience has taught me that when someone becomes dismissive or angry or hostile when the idea of price manipulation is discussed, it's best to simply drop the conversation and move on. No combination of logic or facts is effective against a deeply-held belief. It's better to wait until some new evidence calls that belief into question, opening the door for revisiting the topic.
...
Click to expand...

Hammer => nail head

I once took a multi-month intensive course in applied psychology and this rings so true. Strong emotional reactions are rooted in psychology and not rational deliberation. Few people spend the time to deconstruct their world view ("themselves") enough to be aware of their own emotional blocks.

I suspect that folks with an engineering disposition are more likely to embrace a logical re-examination of their own thought processes and seek an honest view of reality, and that seems to be evident from the very small sampling of hard core peeps who have found their way here so far, but the fact remains that it's only a small percentage of people who can meet Col. Jessup's challenge:

w726j6.jpg


"You can't handle the truth!"
 
Yeah, that is my father. He thinks a dollar will always be worth a dollar and accepted as such, "forever".

That's okay though. If things work out the way I'm planning, I'll be taking care of him when he's old, like he took care of me when I was young.
 
Following on the heels of Chris Martenson's excellent expose, GATA highlights another analysis:
Financial writer Paul Mylchreest's latest Thunder Road Report, titled "Caught Red-Handed," documents the last seven months of the gold price suppression scheme as a function of computer trading algorithms operating worldwide but most heavily in the London and New York markets. Mylchreest writes: "The gold price on Reuters/Bloomberg screens is not really the gold price since the 'gold market' is not a market for physical gold per se. Instead, the price on your screen is a hybrid price of some physical gold that is heavily diluted in the price-discovery process (deliberately) by a far larger amount of 'paper' gold in several forms, notably unallocated LBMA accounts, Comex futures and options, many exchange-traded funds (I would exclude Sprott and the Central Fund of Canada, both of which trade at premiums to net asset value), and billions of dollars of OTC gold derivatives."

Mylchreest's report draws heavily on and credits GATA's work and is posted in PDF format at our Internet site here:

http://www.gata.org/files/ThunderRoadReport-03-28-2012.pdf
Click to expand...

http://gata.org/node/11187
 
Re: Yesterday's sharp drop...
...
The Journal noted this morning's strange and seemingly uneconomic smash down in the gold price and strained mightily to attribute it to a mistaken "fat finger" trade -- even though the "mistake" would have involved more than a billion dollars' worth of gold and this sort of thing lately has been happening practically every other day.
...
But at least these odd movements in the gold market have become so blatant as to command even the Journal's attention, to the extent that the newspaper is compelled to contrive excuses and distractions. That's progress.
...
Wall Street Journal said:
...
The CME Group Inc.'s Comex division recorded an unusually large transaction of 7,500 gold futures during one minute of trading at 8:31 a.m. EDT. The sale took out blocks of bids as large as 84 contracts in one fell swoop and cut prices down to $1,648.80 a troy ounce. The overall transaction was worth more than $1.24 billion.
...
One indicator that the transaction was a mistake was its size. At 750,000 troy ounces, such large trades are rarely conducted amid very thin trading volumes. Monday trading was expected to be quiet as market participants in China and Japan are out on holiday and many European traders are preparing for a holidays there.

"No one who has the account size and the money to trade thousands of gold contracts would do it in one transaction -- that's just stupid," said one trader. The collateral required to purchase 7,500 contracts is about $75.9 million in cash that the trader would have deposited with his broker.
...
Still, not everyone agreed Monday's slip in gold was caused by a keystroke error. Chuck Retzky, director of futures sales for Mizuho Securities USA, said that silver prices suffered a similar leg down at the same time as gold, tumbling 35 cents to $30.805 a troy ounce, but other markets like Treasurys, currencies, and stocks were unperturbed.

"To do it both in gold and silver tells me that it wasn't a trade done in error," Retzky said. He added that the sale could have been caused by a trader looking to cut back holdings on the last trading day of April, as fund managers often time purchases and sales for particular reporting periods.
Click to expand...
Click to expand...

http://gata.org/node/11306

Traders continue to chatter about the so-called "FAT FINGER" trade in gold that occurred early this morning, a trade which dropped the gold price $15 in minutes and consisted of an order of 7,500 contracts. Many seem to agree that it was a trade placed in error.

The problem is that we also witnessed a similar surge in the volume done in the nearby silver pit at the exact same moment. Note the time right after the 5:00 AM hour (Pacific time) on the following 5 minute chart and see how large the volume was compared to that for the remainder of the session.

No matter who did the trade, ( I remain of the opinion that this was a raid designed to knock the metal lower in hopes of creating a cascading running of downside sell stops), the fact is that it failed miserably. ...
Click to expand...

http://traderdannorcini.blogspot.com/2012/04/fat-finger-in-silver-too.html

One minute chart of the trade: http://traderdannorcini.blogspot.com/2012/04/one-minute-chart-of-gold-7501-contracts.html

750K troy ounces = 25.7 tons or approximately 1.3% of annual global production. Not as dramatic as another day, but still bigger than the average investor can handle.
 
Textbook CRIMEX selloff today, look at the white area which covers the CRIMEX trading hours:
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Today has to be the most obvious manipulation in Crimex history.
Somebody pegged gold at 1588 for two hours and then banged it below the support at 1580 to close at 1579. I've never seen it that obvious before.
 
Epic banging the CRIMEX close in gold today. Got to get it below $1720

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FYI:
Banging the close

1) A form of market manipulation where a trader uneconomically buys or sells futures contracts during the closing period. This is done to benefit futures positions purchased earlier in the day or positions in a derivative that is cash-settled based on the futures settlement price of that day.

2) Violating bids or offers to artificially mark the closing price.
Click to expand...

http://www.risk.net/energy-risk/glossary/2038548/banging-close
 
Watch out in 7 minutes for the jobs report. Numbers are going to be election "oriented", i.e. manipulated higher. That could be bad for pms.
 
Whistling past the graveyard.

Nothing to see here folks.......move along.

Circus tickets to the right.

Bread line to the left.

"I'm sorry sir, but you can't enter the grocery store until we complete a cavity search......you might be a terrorist."
 
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And another low volume attack just 15 minutes ago, uncorrelated to any other market.
 
Election is just a few days away. Remain calm. All is well.
 
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