Many sinks were necessary. One to protect the Fed ahead of their FOMC meeting this week. Another was needed to protect the Gold Cartel shorts ahead of options exiry Thursday. And another was used to protect the US desire to promote MORE economic stimulus at this weekends G20 summit. Apparently, one sink was used to replace the sink thrown at the Gold market in vain last Friday.
This morning's take down in Gold on the CRIMEX is all the proof one needs to confirm the CFTC's complicity in the never ending attempt to suppress the price of Gold AND Silver. Gold rose overnight in Asia on the news that China has "signalled" a desire to release their currency peg to the Dollar. Gold rose through the London Gold market before drifting back to unchanged from Friday for the London PM Gold Fix. Following the London Gold Fix at 10AM est, the CRIMEX goons moved in for the kill pulling bids and sending Gold into a free fall until the CRIMEX closed up shop for the day a 1:30PM.
Completely unwarranted except for the rising Dollar, along with record Open Interest in Gold at over 603,000 contracts. The goons backs were against the wall from selling so much unbacked paper Gold into the market in an effort to meet demand. Fools. Yet, because they are allowed to act above and beyond the law to protect their "hedges", the CRIMEX crooks set out to steal the profits on countless contracts in the money with Gold above 1250, and Silver above 19.00.
If you needed proof that the traditional inverse relationship of Gold versus the Dollar has been re-established, look no further than today's currency market action. Of course one is left scratching their head to explain the US Dollar's bid today. NOTHING fundamental supports today's rise in the Dollar. The list of reasons for the Dollar to fall actually got longer today with China's currency announcement. Yes, the reaction to China's announcement was a bit over stated, but the Chinese currency DID move to a new modern era high versus the US Dollar. The Chinese currency announcement was NOT US Dollar positive. AND IT WAS NOT GOLD NEGATIVE.
I put together a monthly chart of the Chinese Yuan with the price of Gold overlayed on it. It was quite a revelation. In June of 2005, China last unhitched their currency from the Dollar. At that time Gold was trading at $434. China kept the Yuan free of it's Dollar peg until the global financial crisis exploded in June of 2008. As China chose to re-establish the Yuan's peg to the Dollar, the price of Gold had risen to $912. We should expect Gold's rise to accelerate as China follows through on it's decision to once again let the Yuan float in the currency markets, as a rising Yuan will make Gold purchases cheaper in China.
The Bottom line on today's CRIMEX take down of the "price" of Gold. Thanks for the sale prices you f***ing morons. Every time you attack the price of Gold, you give us little people the opportunity to buy the real thing on sale, and leave less for you to cover your foolishly huge short positions in Gold and Silver. Ignore this feeble effort by the Gold Cartel to stop the rise in the price of Gold. The price has closed higher for the last 9 consecutive years...so much for price suppression. Slowing the price of Gold has only given investors a longer opportunity to buy insurance for their wealth. And wealth destruction is just a few weeks down the road now.
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