Gold Cartel Monkeys: At Least They’re Predictable – Eric Dubin
TND Exclusive: Eric Dubin |
On last Friday’s Silver Doctors Weekly Metals & Markets I warned that the momentum in gold and silver had started to fade, with paper bullion beginning a horizontal trading pattern, and the mining shares ever so slightly rolling over (see GDX chart in my show write-up; click here).
Following a rare period of back-to-back follow-up days of rising prices, it was clear the cartel was sitting on the sidelines, preferring to let paper metals momentum chasing traders expend most of their capital. Countless times over the last 15 year bull market I’ve watched the cartel follow this pattern when metals intiation a big move. The cartel waits for momentum to fade before attemptint to take prices down a notch.
We managed to see higher prices on Monday. But again, once reaching a higher plateau, trading was flat for most of Monday. Starting with the Tuesday early morning session, the monkeys appeared and the smash turned aggressive later in the day:
If nothing else, the monkeys are predictable!
There’s interesting price data visible in the charts above. Notice silver’s higher slope following the smack-down? For whatever it’s worth, that more aggressive buying of the dip demonstrates a tighter market in silver vis-a-vis gold. Regardless, this attack will be short lived. Once we get past the pricing in of options expiration and further cartel attacks, I believe we will be set-up for a rip roaring June and much higher prices over the course of the remainder of 2015.