Gold Daily and Silver Weekly Charts - Option Expiration Hi-Jinks - Jan Skoyles On Gold

I see in the news where the CME is planning to offer a kilogram gold futures contract in Asia in order to provide a 'pricing reference' for that continent.   There goes the neighborhood. lol.  I thought these were global markets already.

The smash and grab in the metals markets resulted in a fairly impressive price range, especially in silver.  See the intraday commentary on the metals action on a Comex Option Expiration here.

Let's see where they go with this next.

Meet the Banking Caucus, Wall Street's 'Secret Weapon' in Washington.

And US Exported a Record Amount of Gold To Hong Kong In January.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Pause For Earnings

Stocks did quite the swing intraday, but managed to finish close enough to unchanged.

I think we might still have a little more upside in this wash cycle unless something in the real world happens.

Have a pleasant evening.

A Comex Options Expiration 'With a Twist' - Where the Elite Meet to Cheat

"Tomorrow is an option expiration for the May precious metal contracts on the Comex. As May is not an active month, and the greatest contract activity is already moved to June, we may see an expiration with a twist."

When we were kids, we used to join hands in a line, and then swing hard around a pivot and play 'crack the whip' outside.  Once we got going the people on the end of the line went flying.

If you look at the distribution of calls and puts in silver in particular the 'price discovery' this morning makes some sense.  They were discovering what it would take to shake out the calls and puts for losses before they settled the price where it returned the greatest profit.

Oh no, you obviously do not understand the intricate processes of the market,  say Shill & Troll. This is not cheating. This is hedging. Look at the Dollar and the cross markets. And besides, there has always been cheating so this is nothing new. And you can't stop it, they will always find a way. This is just business. No one made you buy those options.

What we saw this morning is a classic shake-out fake-out.  These guys make carnies look sophisticated.

If it were not for manipulation and a foolhardy few, there might be no interest left for the Comex.

Gold Daily and Silver Weekly Charts - El Camino Real

“All that is gold does not glitter,
Not all those who wander are lost;
The old that is strong does not wither,
Deep roots are not reached by the frost.

From the ashes a fire shall be woken,
A light from the shadows shall spring;
Renewed shall be blade that was broken,
The crownless again shall be king.”

J.R.R. Tolkien, The Fellowship of the Ring

Gold and silver continued to be capped just below 1300 and 20 respectively.

Tomorrow is an option expiration for the May precious metal contracts on the Comex.  As May is not an active month, and the greatest contract activity is already moved to June, we may see an expiration with a twist.

There was no movement in the Comex gold warehouses yesterday.

An additional 51 contracts for April gold stood for delivery, bringing the monthly total to 481,400 ounces.  There has been little visible movement of gold as a result of those warrants changing hands, at least so far.

Someone asked me today how it was that the prices could be 'capped' so effectively given the continuing pressure on physical supply by buyers from Asia.

The paper markets are where the price is set, and they have only tenuous connections to fundamentals like supply and demand for real products, especially because they are oriented to the short term and their own internal systems.

In a genuine global market, Chinese firms would be taking large positions on the Comex, and then standing for and taking delivery of bullion products from there.  And miners would be taking their products there for price discovery.

That is not what is happening in New York these days.   The London and New York markets are dominated by a relatively few but very powerful financial firms, and some very large speculators. 

At some point the paper and physical will have to reacquaint themselves and converge, and I suspect that will be a notable reunion indeed.

Have a pleasant evening.