Wednesday, May 03, 2006

 

'Gold Cartel Imploding As We Speak': Grandich

Market Watch has todays trading numbers. "Gold futures notched a fourth winning session on Wednesday to close at their highest level in almost 26 years, but prices gained just over $1 an ounce, their smallest one-day gain since mid-March. On Wednesday, crude prices fell as much as $2 per barrel and strong U.S. economic data triggered some recovery in the U.S. dollar."

"June-dated gold futures closed up $1.10 at $668.50 an ounce on the New York Mercantile Exchange, off their early high of $679.80 an ounce. Prices briefly traded as low as $660 during the session."

"Gold 'simply felt 'heavy' at the top,' said Jon Nadler, an investment products analyst at bullion dealers Kitco.com, referring to a brief pullback to a low of $660 Wednesday. He pointed out that the earlier pullback from the day's peak likely started in the silver pits. July silver dropped 41.5 cents, or 2.9%, to close at $13.795 an ounce Wednesday after trading as high as $14.42."

"But support is at $648 for gold, so there's "nothing special about $655-$658 here," said Nadler. 'Twenty bucks' range is no big deal given where we are in the market.'"

"Peter Grandich said gold has also gained recently as speculators, who had expected a correction from its current lofty levels, rushed to cover short positions. 'The least talked about reason for gold's dramatic rise is the past shorting and manipulation of it by a group or groups who have been desperately trying to cover,' he said. 'The gold 'cartel' is imploding as we speak.'"

"July platinum rose $1.30 to $1,186.70 an ounce after a record $1,198, and June palladium closed down $4 at $382.35 an ounce. Rhodium last traded at $4765/oz, just off the metal's recent high of $4800/oz, which was rhodium's highest level since May 1991. In July 1990, rhodium climbed to an all-time high of $7000/oz."

Comments:
Grandich is always a colorful guy. He touches on something that has me puzzled; in previous gold bull markets that I have lived through, the central banks always stepped in to snuff it out. Either through repeated, concerted warnings of dumping reserves or actual market positioning. But this time the CB's aren't saying or doing anything that I've heard about.

I realize they have a lot on their plate, but not even a rumor?
 
Could be they're no longer in a position to do anything, even credibly threaten?
 
I'd love to hear stories of the shorts getting burned and for how much.
 
Would it make difference that they're marketing the stuff this time around? I don't believe there were silver and gold eagles last time around.
 
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