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HUGE Development For GATA And Gold
In The Arab World !
By Bill Murphy, Chairman, Gold Anti Trust Committee (GATA)
March 1 ? Gold $432.40 down $3.70 ? Silver $7.19 down 16 cents
A hard beginning maketh a good ending... John Heywood "The Proverbs of John Heywood" (1546)
GO GATA!!!
http://www.lemetropolecafe.com
In the last couple of MIDAS commentaries I have done what I could to insult the mainstream gold world as much as possible for their ineptness and cowardly approach to dealing with the blatant manipulation of the gold price. Might as well make it a Trifecta and up the ante at the same time.
What is so grating is that the mainstream gold world dolts refuse to acknowledge the obvious modus operandi of The Gold Cartel. The cabal bums are so organized they repeat their manipulation techniques over and over again, like the $6 Rule ? like taking gold down in the Access Market IMMEDIATELY after a concerted price-capping effort during the day.
Last evening Dallas time was a perfect example. Gold was shoved 80 cents to a buck lower not long after gold closed on Comex. The dollar then strengthened a tad later on. When I woke up this morning, the dollar was slightly lower, yet gold had weakened further, called down $1.40 going into the Comex open.
Contrarily, the S&P futures contract almost ALWAYS opens higher after a decent sell-off. Even Richard Russell has noted how the S&P?s are almost always called higher these days and have been for years now. The Gold Cartel is the one at work suppressing the price of gold. It is The Working Group on Financial Markets (PPT) who is propping up the US stock market and influencing its price action.
On that note Goldman Sachs and JP Morgan Chase pressed bullion right off the bat this morning, however, sizeable orders from physical market buyers showed up as the price took out $433. After a brief rally, The Gold Cartel attacked again, following up on their price-capping selling of the past week, even though both the pound and yen were modestly higher. Today?s battering had nothing to do with the dollar. It was all about The Gold Cartel forcing the gold price lower because the euro gave back a piddling of its recent gains.
Today?s outrageous manipulation is a classic example of what I have conveyed to Caf? members for years. The key to the gold price action is how The Gold Cartel uses the action of the dollar to rig the price. They go into capping mode on various gold up days in an organized un-American fashion, and in violation of all the US anti-trust laws. Then, they simultaneously strike to take the price lower when the word goes out from cabal headquarters to do so. Gold has traded this way for years. Can it be any more obvious? If you can?t see what is going on here, you couldn?t have the brainpower of a gnat or a "grapefruit." Perhaps I am being too kind? Meanwhile, the fact that commodity prices have gone berserk is completely ignored by the dullards in the mainstream gold world. PRICE ACTION MAKES MARKET COMMENTARY. Seems not much matters anymore to US financial markets. US deficits, crummy dollar, soaring real inflation, etc. What does matter is spin and market manipulation.
Gold and silver traded like heavy stones sinking in water the entire trading session. Rallies were non-existent. Only cash market pricing, as gold sank towards $430, saved the day. The gold open interest rose, as fully expected, to 287,801, up a sizeable 4271 lots. This reflects spec buying and Gold Cartel selling to cap the price, as brought to your attention by MIDAS yesterday. Spec longs who bought after Tuesday morning?s limit up day gold pop are now all losers.
The silver open interest fell by 3584 contracts to 101,630 as specs ran for the hills, as did mega long Morgan Stanley. No surprise there either.
The CRB rose once again, this time a mere .26 to 305.26, even though crude oil, beans, gold, and silver were lower. Once upon a time, pre-Gold Cartel and its price manipulation scheme, this chart would have had gold and silver rocketing:
April CRB
http://futures.tradingcharts.com/chart/RB/45The bonds continued their dipsy-doodle, falling another 6/32 to 112 29/32.
The dollar recouped modestly, rising .29 to 82.80 and the euro fell .57 to 131.16. The yen bucked the trend for the day and rose to 104.32.
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The John Brimelow Report
Heavy Turkish buying; Heavy selling by ???
Tuesday, March 01, 2005
Indian ex-duty premiums : $6.18, PM $6.03, with world gold at $434.50 both times. Comfortable for legal imports. The Reserve Bank has been actively repressing the rupee, regrettably, from the point of view of gold?s friends.
Turkish imports for February, posted this morning on the Istanbul Gold Exchange?s website, were huge. At 29.411 tonnes, they were the third highest in the 9 2/3 years the Exchange records, despite $US weighted average prices, according the Exchange, being the 4th highest. February imports were 11.7% up on January and 35% above Feb ?04: $US gold was down 0.3% and up 4.7% respectively. Turkish Lira prices were -3.2% and +2%.
No doubt this quantity reflects a powerful response to the effort to break gold down in the first week of the month: but overall it is clear that the propensity of the Middle East to import gold has shifted. No wonder gold refused to break $400.
The ECB reported today that two subordinate Central Banks sold gold last week (a third bought coin); the net proceeds were E99Mm. This suggests about 9.4 tonnes, the highest this year. At an estimated 31.7 tonnes, the ECB zone sales in February are about equal to Turkey?s imports.
With world gold showing no resilience this morning, ("?spot gold was well offered by dealers" ? Mitsubishi) TOCOM essentially stepped out of the market. On volume only equal to 13,014 Comex (-57%) open interest was static (up 338 Comex); the active contract was down 11 yen and world gold went out $1.60 below NY. (Yesterday NY traded 47,718 lots; open interest jumped another 4,271 lots ? 13.28 tonnes.)
Yesterday, according to ScotiaMocatta, gold
"436.10/436.60 in New York and made a steady climb...A new high for 2005 (437.90/438.40) was posted before drifting back off on local selling. Selling from overseas sources then started to weigh on the market causing a sell off?"
The net effect of this was that it took over 13 tonnes of net buying to raise the gold price $1.50. In the past four business days, Comex has added 15,570 contracts of open interest (48.7 tonnes) to add $3.10 to the April contract... Plainly, there is a large seller about.
The Gartman Letter has noticed this:
"?there was selling yesterday at $437-438 which proved quite formidable; however, rather than direct gold selling we suspect this was simply profit taking correlative with the strength in the US dollar?. We look for short term support at the $431.50-433.00 level today and we doubt that that support shall be broken."
Profit taking, of course, would reduce, not increase, open interest. As Mitsui-Sydney ingenuously remarked this morning:
"?offshore buying meant gold was firm all day, pressuring resistance & some good size traded. Overnight it was pretty similar, however the flows were lighter. The question now is, with so much pressure being applied to the topside, what is holding gold back?"
Gold seems to be back in the 2001-2004 mode, with successive levels being ferociously defended, but eventually being overcome by rising physical offtake. That is what the Turkish data implies. From that perspective, the key development in gold this year has been the loss of downward momentum developed by the Great Liquidation of January.
The noted gold bear joins with a number of commentators ? Gartman, Don Hays, various Neoconservative political writers, to proclaim peace is breaking out in the Middle East. This observation seems fashionable ? or popular - at present. I doubt he is naive enough to believe it.
JB
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CARTEL CAPITULATION WATCH
As usual the US stock market rebounded after a spanking. The DOW recouped most of yesterday?s losses, gaining 64 to 10,830. The DOG did better, jumping 19 to 2071. Liquidity is the name of the game. At some point reality is going to set in and this market is going to come hurtling down. Hard to know what will be the catalyst and when, however, it is coming. Denial and spin only goes so far. With inflation and interest rates on the rise, corporate profits are going to be squeezed. The rigging of the gold price to mask the true inflation barometer in the US will only go so far in this environment.
Platts:
New York (Platts)--1Mar2005/351 pm EST/2051 GMT
Analysts were at a loss to explain the decline in gold, even as Iraqui violence escalated? ?END-
These analysts need to sign up for a www.LeMetropoleCafe.com membership. It would prevent them from remaining clueless.
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US economic news:
09:59 Jan. Construction Spending reported 0.7% vs. consensus 0.4%
Prior reading revised to 1.2% from 1.1%.
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10:00 Feb. ISM Prices Paid reported 65.5 vs. consensus 67.5
Prior reading 69.
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Feb. ISM Manufacturing reported 55.3 vs. consensus 56.9
Prior reading was 56.4.
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Marsh Has $676 Mln Loss, Cuts Dividend and 2,500 Jobs - March 1 (Bloomberg) -- Marsh & McLennan Cos., the world's largest insurance broker, slashed its dividend and planned 2,500jobs cuts after reporting a $676 million loss from settling NewYork Attorney General Eliot Spitzer's bid-rigging accusations. -END-
March 1 (Bloomberg) -- Japanese household spending had the biggest increase in nine months in January and the world's second- largest economy created the most jobs since 1992, adding to evidence a recession is ending.
Spending by households headed by a salaried worker rose 8.2 percent from December, seasonally adjusted, the statistics bureau said today in Tokyo. The economy added 470,000 jobs, helping the unemployment rate hold at a six-year low of 4.5 percent.
An improving j...