SD Weekly Metals & Markets: China Returns!

by The Doc and Eric Dubin, Silver Doctors

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On this week’s Metals & Markets, The Doc & Eric Dubin break down the week’s trading, discussing:

  • Chinese New Year Holiday Concludes- gold & silver rally on cue!
  • Greek Game Theory– Why Eurozone crisis could escalate to a contagion- beginning with Spain! 
  • Justice Dept Investigation on PM manipulation- regulators are attempting to distract the market from the REAL center of PM manipulation! 
  • Indian gold demand set to ROAR with imminent easing of import duties
  • Algos unsuccessful in attempts to cap gold & silver Friday- sign the beatdown has ended?

The SD Weekly Metals & Markets With The Doc & Eric Dubin is below: 

For precious metals investors, China’s return from holiday was the most important news of the week.
Chinese buying was visible approaching midnight, Eastern Standard Time on Tuesday and into Wednesday a.m. hours I spotted this dynamic when it started late Tuesday and started a thread on the Silver Doctors Facebook page to document it in real-time as the trend progressed throughout the rest of the week. Click here to access that page, which I have placed on TND to enable accessibility for people without Facebook accounts.

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Notice the algorithmic-driven constraining of gold in a tight range for the last three days during that initial Asian buying window?  Notice how the peaks and valleys during that window tend to roughly match over the same time period on each day?  That’s typically a pattern driven by computer-driven trading, and very likely the cartel was driving it – certainly with respect to Friday’s early morning trade, where a “capping” algo appears to have been set to turn prices down with paper selling anytime price approached previous day prices.  Kitco’s 72 hour charts are quasi-spot charts, but they are a handy proxy to show price trace patterns within a 72 hour window that reflect COMEX near-month contract trading.

Friday, either short covering or fresh paper speculating returned following the COMEX open – probably both, and with fresh long positions representing the lion’s share.  Thursday’s smack-down in advance of the London P.M. Fix indicates that the cartel was likely interested in ensuring the fix price wouldn’t trigger awareness among the “conventional” finance world that gold pulled a $10+ dollar pop during London trading hours;  most in the “conventional” finance world only look at the end of day price and not intraday charts, if they even bother to look at gold at all.  The cartel ramming Thursday’s London P.M. fix to the same sub-$1210 level you see at that algo-driven constriction visible in the above chart is the sort of painting of the tape market manipulators strive for.  It kills the signal of that burst on Thursday from even being seen by a great many “conventional” market participants.

But the good news is that Chinese buying is strong, and Indian buying will accelerate once further liberalization of import restrictions takes place in the next week or two.

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Silver failed to attract the same sort of bid gold enjoyed.  But if gold accumulation continues through next week, silver will bounce back rapidly.

 

The Greek/EU Tango:

Source:  William Banzai7

During the show we reference a fantastic Alasdair Macleod article – click hereMacleod has nailed a big part of the game theory thinking behind Greek fiance minister Yanis Varoufakis’ strategy, and how Eurozone leaders are likely thinking about restive populations in Spain and Italy.  Spain, in particular, could end up becoming a major problem for the Eurozone.

Spain’s Podemos party has come from near total obscurity to now commanding 30%+ favorable polling.  The general election will be held onDecember 20th, enough time for the Greek end-game to be in the rear-view mirror.  There’s significant probability that the anti-austerity Podemos party will continue to gain momentum between now and then and win the election.

The Podemos Party’s Secretary General, Pablo Iglesias visited the United States for the first time to hob-nob with US progressive activists.  I published a video of his first US speech.  Click here to check it out.  It provides insight into the Podemos Party worldview.  They will aggressively fight EU austerity mandates should Podemos win the December election.

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