This past week I have published a couple of gold-relevant posts on the info.sharpspixley.com website which look at the current price pattern for gold and whether it has bottomed yet.
The first was:
The first couple of paras follow – to read the full article click on the linked title above:
The past few trading days have seen the gold price hovering above and below the $1,200 mark in the light of a stronger dollar and a lack of Chinese data due to the nation’s Golden Week holiday this week. Every time the gold price has nosed above $1,200 it has been taken down a few dollars again.
The hard right wing gold fraternity generally put this down to manipulation by the powers that be on the futures markets where at key times remarkable amounts of paper gold are offered for sale – although spoofing, where massive sales or purchase orders are placed on the futures markets, but with an intent to cancel orders before they can be implemented, may well be a prevalent cause. For example, the U.S. CFTC regulator has just fined Canada’s Scotiabank a paltry $800,000 for doing this on the COMEX futures markets for gold and silver from at least June 2013 to June 2016. It makes one wonder how common this kind of market manipulation is among the other major bullion banks. The profits that can be gained from playing the markets to their advantage in this manner far exceed any fines that may be imposed by the regulators and the banks may view the prospect of being caught out and fined just as a cost of doing business. After all an $800,000 dollar fine is just peanuts to a major banking entity. Who knows what huge profits were made by playing the markets in this manner ?
The Chinese Golden Week holiday suggests…………. To read full article click on the title above.
The second article looked at the weekend close above the $1,200 level, looks at the short term headwinds facing gold, and then the long term positives. To read the full article click on the link below:
The gold price managed to end the past week above the $1,200 level, but still a little below its 50 day moving average, although it did manage to breach that line intra-day, so it is close. But the big question is is it there to stay, or will it turn down again and test its recent low of around $1,183 again?
We have read a number of gold commentaries suggesting the bottom is in on numerous occasions during gold’s decline from above $1,350 earlier in the year, with most such forecasts being overtaken by further declines within a very short space of time. But this time around it does look like there may have been a firm bottom in the low $1,180s. But as we noted in an earlier article this past week, gold has been struggling to remain consistently above the $1,200 level, despite continuing buying pressure.
Gold has been range bound for most of the past few days between around $1,190 and $1,210 being unable to break out in either direction so far. There are certainly short term headwinds………
To read full article click on the title above