Manipulating Gold – Fed Gets Caught Red Handed
If you’ve read any of my previous articles about the manipulation of gold prices, you know that the Fed and other western central banks are desperately trying to suppress prices.
Although they’ve been doing this covertly for decades, now their manipulation is becoming more extreme and far more visible.
Take, for example, what we can clearly see on February 6th, when the prices of gold and the S&P 500 stock futures were blatantly manipulated.
In late January and early February, the price of gold attempted to push up through $1,265.
It has since pushed through and in doing so triggered short covering by those who are riding the coat-tails of the Fed’s manipulation of gold prices.
This short-covering has since driven the price of gold higher and higher.
As I’ve discussed previously, the west is facing a monumental problem of short supplies of physical gold to deliver to countries like China and India, who are aggressively buying.
As you may remember, the Fed has been working feverishly for years to keep the price of gold low to strengthen the perceived value of the dollar.
Then came Thursday, February 6th.
As the Asian markets opened, gold started to move higher. Then, as the Comex session opened, gold rose from $1,254 to as high as $1,267 per ounce.
Why? Because of short-covering.
Now, look what happened at 8:50am:
In less than one minute, 3,225 gold contracts were sold, driving the price down by about $15 per ounce. This single minute of trading was about 40 times the normal volume seen in the previous 15 hours of trading!
And surprisingly, the SP500 futures contract jumped higher:
When this strange combination happened, there was absolutely nothing in the fundamentals that could explain this move . . . other than the combined manipulation of gold and the stock market futures. All of this was of course in vain although the bottom line remains.
The bottom line is this: The West is running out of physical gold at the exact time China, India, and other Asian buyers, are continuing to buy in record amounts.
The Fed is trying desperately to head off the cataclysmic problem of delivery fault.
So, they are doing everything possible to drive prices down, especially during key Comex delivery periods.
They would much prefer that holders of these gold futures contract settle in cash, rather than in the delivery of physical gold.
However, what do you think will happen when there’s no more gold for delivery?
How then will the Fed be able to continue pushing the price of gold down by selling what everyone will know is not there?
What will happen to the dollar when the price of gold skyrockets?
These terrifying questions will be examined in an upcoming article.
In the mean time, I would love to hear your comments and thoughts on this subject and would be honored if you were to share this with your friends and colleagues using Facebook Twitter etc.
Until next time…
P.S. If you ever wanted to try our automated trading software which has out performed the S&P by 8 times for three years running now is your chance.