NIRP Supports Gold’s Explosive Rally with Ultra-Bears and Ghosts in the Asylum

NIRP Supports Gold’s Explosive Rally with Ultra-Bears and Ghosts in the Asylum by  for Trader Stef

It has been an explosive rally to watch, participate in, and study the nuances of bullish chart dynamics. For some folks, even when the chart and fundamentals handed you an opportunity on a silver platter with a heads-up well in advance, they reminisce over old and bearish price predictions pulled out of spooky closets and wait for the next cyclical breather in the price action to complain about manipulation ghosts. Coincidentally, the gold price is fast approaching another window of price consolidation before it can successfully break out to new all-time highs.

Financial markets are no longer manipulated by governments in the shadows, but are bullied around by global automated platforms, high-frequency trading, and algorithms with an interconnected market, which it is next to impossible to control the big picture outcome. The old-school method of picking up a phone and fixing a price was history well over a decade ago, and the SEC was clueless as brokerage houses and rogue traders graduated to high-tech spoofing gambles, rather than banker conspiracies to “fix” an equity, commodity, or currency price. I am working on an article to explore that story. Here is one recent example of what is occurring instead of a government wizard or central bank spook pulling your chain.

Ex-Scotia Capital, Bear Stearns precious metals trader pleads guilty… and admitted manipulating precious metals futures markets for nine years, the latest in a series of crackdowns on so-called spoofing trades. The trader, Corey Flaum, is cooperating with an ongoing federal criminal investigations into gold, silver, platinum and palladium markets, as is ex-J.P. Morgan trader John Edmonds. Federal prosecutors have lodged 11 spoofing cases against 15 defendants in the past five years.” – CNBC, Jul. 25

From the old and bearish price prediction closet, we have Harry sparking a ruckusamongst fellow precious metal geeks by reviving his $700/ounce price target. I can never say never because a rogue algorithm is capable of causing a flash crash in any asset or stock exchange, but from a technical and fundamental analysis standpoint, the odds of such a price in gold today is near zero.

Bill Holter’s Commentary… Harry Dent gets stuffed again only one day after pontificating…I don’t think he will need much time to see $1,525 in the rearview mirror, then maybe he withdraws his “$700 and possibly $250” gold forecast? I have publicly requested several times we debate the facts, and nothing but crickets from him. I know I am not “Harvard trained” and instead only went to the school of hard knocks and common sense but I renew my offer to debate the economic/financial facts. I will accept anyone he would like as moderator…what do you say Harry? – Jim Sinclair’s Mineset, Aug. 15

SRSrocco on Harry Dent vs Gold Cost of Production

SRSrocco on Harry Dent vs Gold Tooth Fairy

Aside from the POTUS tweets about the trade war with China and a multitude of geopolitical issues to consider, what is influencing and realistic about the price of gold are the following:

  • The Yield Curve Inverted! Remind Me Why I Care – Bloomberg, Mar. 22

  • The Race-to-the-Bottom Standard – Look who’s heeding Judy Shelton’s advice on exchange rates – WSJ, Jul. 30

  • Greenspan Sees No Barriers to Negative Treasury Yields – Bloomberg, Aug.13

  • Fed over tightened & behind the curve. Recession awaits – Credit Writedowns, Aug. 15

Subtract the official rates of inflation (in the U.S.) and we live in a NIRP ZIRP world across the board.

Interest Rates in the Developed World

  • 30-year Treasury yield breaks below 2% – MarketWatch, Aug. 15

30-year U.S. Treasury Yield Breaks Below 2%

Ole Hansen on Twitter Gold vs. Bonds 7am Aug 14, 2019

Admir Adnani Morgan Stanley Gold Report Real vs Interest Rates

 

If you missed my analyses on gold’s price advance since the Aug. 2018 low, I suggest you review “Gold’s Alligator Tongue and Asian Short Squeeze Obliterated $1,380 Resistance,” published on Jun. 20, “Post-G20 Truces Coddle a Plunger Candle in Gold,” published on Jun. 30, and “The Banking Scam and Gold’s Poker Face at $1,433,” published on Aug. 4. To view a larger version of any chart, right-click on it and choose your “view image” option.

Continue Reading / Trader Stef >>>

 

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