The Boys Wasted No Time
Apr 15th, 2008 | By Ed Steer | Category: Gold MarketThe boys wasted no time in going after the precious metals in the early going in the Far East. Gold and silver both got sold down hard the moment Comex trading started in Sydney, with silver being down 50 cents at one point. Things began to improve once the traders in London showed up, but the top was obviously in in both metals, once London closed and the NY traders had the markets to themselves.
Friday’s open interest numbers showed gold o.i. up 765 contracts and silver o.i. rose 401 contracts. Trading volume on Friday was light, and was even lighter yesterday. As I’ve mentioned several times, without the tech funds in the market, volume is always thin. So it’s very easy to move the prices around…for those whom it may benefit the most.
We are sort of in “no-man’s land” right now…above the 200-day m.a., but not above the 20-day m.a….where there would be tech fund buying interest. Once in a while it crosses my mind that the boys intentionally keep the spot prices below the moving averages…just to keep the tech funds out of the buying loop for as long as possible. If that’s the case at times, then you have to ask yourself this question…is the Cartel gunning for the 200-day moving averages on the down-side? Time, as they say, will tell.
I have another cartoon. This one too, would be funny…if it weren’t so tragically true. Uncle Sam looks none too happy.
Today’s story of interest comes from my friend James Turk over at goldmoney.com. In his latest commentary…which is entitled “The Dollar Hasn’t Bounced”…Turk goes out on a limb and says that “I think we have reached the ‘tipping point’…the final collapse of the dollar begins now.” This is definitely worth reading. Click here.
As I said on Friday, the boys would probably have everything smoothed over by Monday. They did. Just check the US$, the Dow…and gold and silver prices. Even the Goldman Sachs comment that “Earning signs are awful” made no difference. One has to wonder if anything will make a difference…or be allowed to make a difference.
See you here again tomorrow.
Casey Research correspondent-at-large Ed Steer is a keen observer of the financial scene and a board member of GATA.org.
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