Another day…and another Comex hammering in gold and silver by the ‘2 or 3′ U.S. bullion banks. I’m beyond pain here…and neither the blue pill or the red pill is working…either individually or collectively. Even the new tinfoil hat that the Mogambo Guru sent me isn’t cheering me up.
On Friday in the Far East, the gold price wandered aimlessly until shortly after the London market opened. A rally ensued that really gathered steam shortly before New York opened for business. The peak came at the London p.m. fix…the same as Thursday. From there, it sold off a little, but gained most of it back in Globex trading in the after-market hours.
Gold tacked on about $5 going into the London open early Tuesday morning, and shortly after that it was down hill until London closed for the day. At that point the boys in the Comex (IAU) were on their own.
Thursday was the day that the ECB raised their interest rates…and the US jobs report came out. Considering the nature of the news, one would have expected the US$ and US equity markets to fall…and gold and silver to rise. It was not to be.
Commodities are governed by supply and demand - more than any other variable. Just take a look at the precious metals bull market we’ve enjoyed since 2001.