Chart: Gold London P.M Fixed and the Commercial Less NonreportablesTraders COT Options Stochastic Weighted Average of Net Long As A % of Open Interest
My Dear Friends,
Please accept my apology for a terse review today. I was in and out of the office for meetings.
The action of the gold market suggests to me a market made by edict, a new influence. It smells very political.
The body blocks of the gold price so far were at $1800 vs. the cash market, and more than 10 times at $1775. Now we have a new target price of $1750.
With all the markets that surround and influence gold not supportive to the decline in the gold price, I can only come to the conclusion that this is a political favor for the incumbent. When have we ever seen such prices picked in gold to make a stand?
The takedown this AM was so obvious, as was the recovery, as was the present price. Any person who takes the Presidency has extremely limited room to maneuver financially. There is no functional tool in any central toolbox other than QE to deal with national insolvencies.
Austerity is not one of them in the USA. Those with no margin have no problem.
This reaction is limited in a short time period.
Respectfully,
Jim
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