"The Unspeakable. What is this? Surely, an eschatological image. It is the void that we encounter, you and I, underlying the announced programs, the good intentions, the unexampled and universal aspirations for the best of all possible worlds.
It is the void that contradicts everything that is spoken even before the words are said; the void that gets into the language of public and official declarations at the very moment when they are pronounced, and makes them ring dead with the hollowness of the abyss. It is the void out of which Eichmann drew the punctilious exactitude of his obedience..."
Thomas Merton, Raids on the Unspeakable
Gold, represented below as the continuous futures contract, is bouncing just below the big resistance at 1300.
The reason that the 'spot' prices quoted by sites such as Kitco are lower is that they are discounting the December contract back to August.
The spot price is really a derivative of the Comex futures market, calculated in much the same manner as 'fair value' is calculated from the SP 500 futures front month contract. Most people are surprised to find this out. The paper market really does direct the retail physical market.
If we get a clean break of 1300 higher, it might be difficult for the wiseguys to keep it under control. That is the crux of the matter.
And if we fail to break out, we can always go back down to the bottom of the trend channel.
Stocks are wobbly. This is of growing concern to the powers that be.
The demi-gods like anything that they can create almost at will: stock certificates, paper money, paper gold, complex derivatives.
Let's see how long these jokers can keep treading water.
Have a pleasant evening.
