Gold and Silver Shellacked

By Tom Luongo in Gold and Oil News | April 3, 2013 1:49 | Tags: , , , ,

At this point I’ve got to say that it is becoming nearly comical the lengths to which our central planners will go to keep the world from panicking over their own profligacy.  The attack on Gold and Silver today was one of those near comical moments.  At this point what do they think they are going to accomplish with this kind of desperate market rigging?

Gold came into the the European session having regained $1600 per ounce and steadily pushed against resistance every $2 up to $1604 before the selling began and pushed it back to $1600.  Just before the COMEX open the floodgates opened and the selling began.  Since there was no snap back rally this was official sector selling not some trapped hedge fund.  In the Silver pits $28 was finally broken down and the price taken down to near $27.25 per ounce.

Unfortunately for the paper hangers the open interest on the COMEX continues to rise in Silver as the longs no the shorts are trapped and are simply loading the cannon with even more shot.

There was nothing to precipitate this move.  No news, no major moves in oil or bond prices, simply a $25 dollar haircut in the price of gold and $1 shaved from the price of silver simply to help JP Morgan and HSBC get off the hook of their ruinous short positions.  Looking at the volume however, tells me that there are an awful lot of strong hands just waiting to catch money falling from the sky.

 

About Tom Luongo
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.



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