13 August 2013

Gold Daily and Silver Weekly Charts

Retail Sales had stocks on the move higher while gold saw a bit of a pullback after its run higher.

Silver was relatively strong as it continues to play 'catch up' for the year.

Tomorrow we will see the PPI numbers.

Someone presented an argument that the price of gold went down so that the wiseguys could make better buys and ride it back up.

I think this is quite likely, but it is not the only or even the primary reason.  The wiseguys needed some sort of sanction to engage in such a profound market operation.  And making money on the side which they jigger prices goes without saying as a perk.    Few things in life are due to simply one thing or another, but have a buffet of motivations as they have a number of participants with their own motivations.

Much of this back and forth action in trend channels is the 'wax on, wax off' phenomenon, and the point of the Dr. Evil strategy is to disrupt a market to make money on both sides of that gimmickry.

But to disrupt the entire world market in a very visible way requires a bit more latitude than the average trading desk can provide. And understanding this helps one to interpret the data with a bit more insight. There is little doubt in my mind that some very big players found themselves 'staring into the abyss' when the Bundesbank asked for the return of the German people's gold. And this has long term implications. That the market operators were able to use this information for their own gains goes without saying. They are not charitable institutions. They always get to wet their beaks in the pool of official corruption.

Make of this rather obvious comment on the markets what you will.