Gold moved up last night, came in higher in New York, rested very briefly, then exploded.
Once again we see gold move mostly on its own … the best kind of price action. The euro was only up .30 and the yen
was .40 lower. The surging physical gold market has held its own long enough to give The Gold Cartel fits. This strong
action, along with euro gold taking out 500, was enough to entice the funds back into the long side. Again, how typical.
They get forced out at $650 due to The Gold Cartel and then get back in above $690. Even the widely followed Dennis
Gartman has been completely buffaloed by the cabal. At conferences and on CNBC, he has extolled himself as a gold
bull. Yet, now the market is on the move and he is out … as he has made a crucial error by not understanding it has
been a nefarious GOLD CARTEL holding down the price (one that is gradually losing control), not just general central
bank liquidation.
What else is going to propel such surging buying interest in gold? Well, honestly, it has all been laid out in this column
for weeks and months. The only difference is that we finally have manifestation.
What is paramount at the moment is the growing realization how really bad things are in the housing/mortgage market …
that the problems are MASSIVE and will require money, money, and more money thrown at the financial markets. This
accrues to gold any which way you look at it.
The LIBOR rate continues to rise in Europe because financial institutions are afraid to go elsewhere for funds. That is
called fear of COUNTERPARTY risk … even various money market funds are suspect (see Kiki Table). Owners of
physical gold do not have counterparty risk. Never has this special gold quality been of more paramount importance.
Gold was stopped right below $700 per ounce, which is par for the course and to be expected. However, it would appear
this is the BEGINNING of the monster move many of us in the GATA camp have been looking for. It is my opinion gold is
headed for $3,000 to $5,000 per ounce. To get there we have to start somewhere. Might as well be now. While it might
be hard for some to fathom, moves like today will be commonplace in the near future. Actually, a day like this will be a
subdued one. As a veteran futures market trader, mark my words on that one.
The gold open interest rose 2155 contracts to 341,594, while the silver open interest only went up 237 contracts to
108,031.
500 Euro Break out Alert...
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