GO GATA!
Our kind of day. Gold surged on the opening, coming in $4 higher, or double expectations.
Right before the PM Fix, Goldman Sachs turned huge buyer, probably for a customer – perhaps for one of its followers who couldn’t take the upside heat any longer. As is The Gold Cartel’s custom, the cabal then went after gold on the Comex as soon as the physical buying at the PM Fix was completed. The attack was led by cartel veteran Deutsche Bank.
Yet, as we have seen so often of late, monster hedge fund buyers were lying in wait – expecting The Gold Cartel to do their thing. The $2 and change hit by the cabal forces was short-lived. It was in your face time, as gold crept right back up, making modest new highs near the close. And yet again, gold did not close above the highs it made in the first half hour in the Comex trading session. The Gold Cartel is going down, but not without their usual arrogant fight.
Observations:
*Weeks ago MIDAS noted gold was trading differently. It sure is.
*Gold is running higher when it should because the arses who are suppressing the price have hit a spot where they are short of available central bank gold to meet surging demand – meaning even with their clandestine gold leasing they are short of gold to actually to meet that demand. The Gold Cartel will have more gold to sell officially on September 26 when the next year of the Washington Agreement kicks in. What they might find are buyers lining up to take it all off their hands.
*Gold is moving higher even as the Orwellians jack up the dollar. For years MIDAS went against the grain and ranted that gold could rally $100 with the dollar doing nothing; that the dollar/gold relationship was fabricated by The Gold Cartel to suit their own trading agenda. Of course, a weaker dollar is a plus for gold and at some point will be a big deal. My longstanding issue was that gold didn’t need a weaker dollar to blow sky high, and would if it weren’t for the crooks.
*What madness this PPT outfit is perpetuating. What fun to see gold move up on its own without help from a weakening dollar. With gold up over $5, the dollar rose.43 to 87.89 and the spot euro fell .55 to 122.19.
Thus, the euro price of gold soared to 372.29, up 6.45.
*As each day passes, it appears Katrina WAS the tipping point for The Gold Cartel. The biggest, smartest money in the world can clearly see the bind the US is in now. We are printing and spending money like crazy on Iraq and Katrina, in addition to the other budget deficit issues. The reasons to own gold are going off the charts.
*As mentioned for nearly two weeks, the gold technicals are as bullish as the gold fundamentals. The daily, weekly, and monthly gold charts are extremely powerful with gold bolting higher out of an enormous base – one which can support a much higher gold price.
October gold
http://futures.tradingcharts.com/chart/GD/A5
*The incredibly low Café Sentiment Indicator is turning out to be as bullish as I expected it to be, which is why I kept bringing it to your attention. The gold train is leaving the station and most investors remain completely clueless. What is astonishing is how so many interested in gold in the past could care less. Guess they have their real estate and general stock market portfolios to look after.
*Can it be any more obvious that the crooks are preventing silver from rising because they are in the process of losing control of the gold market? We know The Gold Cartel is gradually losing control of their fraudulent rig because gold is shooting up independent of what the dollar does. As mentioned, that was the mainstay tool of their rigging operation since 1998.
The silver chart is completely different from gold.
December silver
http://futures.tradingcharts.com/chart/SV/C5
*The suppression of the price of silver is out of control. I have seen silver rally $3 in a week. It will do so again, out of nowhere. $10 silver will be here sooner than most think possible.
*The dollar has regained most of its losses suffered after Katrina. How can that be? The dollar fundamentals have deteriorated enormously. The only logical explanation is the US called the central bankers of the world and begged them to help the US shore up the dollar to prevent a flight from US assets during this crisis period.
September dollar
http://futures.tradingcharts.com/chart/US/95
September euro
http://futures.tradingcharts.com/chart/EC/95
*The gold open interest only rose 4775 contracts to 325,975. With gold making 17-year highs, the OI is 50,000 contracts off its high. There is room for 100,000 new spec longs to jump in and send gold to $480 to $500 as a first stop.
*The bond vigilantes are finally waking up. The 30-year dropped 20/32 to 115 10/32.
September Treasury Bond
http://futures.tradingcharts.com/chart/TR/95