Please visit my blog for the videos and legal disclaimer:Chris Powell of GATA: Gold Manipulation Historical Fact Not Conspiracy Theory.
After headlines today about the settlement in the FOREX market manipulations by the major banks it looks like "this conspiracy theory" will be proven to be true very soon as well or is it already happening? If traders from major banks and even BOE were rigging the FOREX what is happening with Gold and Silver markets were the manipulation is "blessed" by the Central Banks? Will these developments coincide with the cycle bottom for Gold called by Charles Nenner now?
Gold and Commodities: What Is next - Major Reversal Or Another Bloodbath?
We had a small party this Friday with Gold short covering in a full action. Will this Reversal hold to its promise now? All hope was lost for the Gold bugs and all miners were obliterated in capitulation last week. This is when the bottoms are formed. No buyers and everybody who can has already sold. Last few weeks we had no bids in any junior miners and if any volume came in it was sold at any price. It is The Capitulation. I have seen it before and not a lot of people out of our industry can believe it, but we have hit even the lower low than in the middle of financial Panic in 2008 in our sector!
Nobody knows the future and I am not a trader any more. I have to stick with my companies moving forward, building up the assets even when nobody cares any more. But when the turn-around comes the move from insanity Low to another side is the most dramatic of all as well. You just have to stay in one piece before it. Have we reached this level?
The chart above could be the answer. Everybody is Bullish on US Dollar and Markets. Everybody is Bearish on Gold and Miners. Sentiments are at the total extremes. Fundamentals are supporting much higher Gold, Silver and Copper prices. The most important: smart money - Industry Insiders are buying the best assets now.
Please notice the fist Candle when USD started this rally in May 2014, the move was dramatic and uninterrupted. Now we have the Reversal Candle just formed. What will bring the downward pressure on US Dollar now? I do not know, but Nothing grows up into the Sky. Strong US Dollar means that Deflation can become the reality. Who will risk it now? We will see very soon and the next week will be very important. The real short squeeze has not even started yet.
Alan Greenspan talking about Gold as Premier Currency, Charles Nenner calling the cycle bottom and China buying record amount of Gold could be the signs of the tide coming up now to the gold market.
Disclosure: The author is long TRRXF, ILHMF, MUX.