September 11 - Gold $316.40 down $1.40 - Silver $4.54 down 1 cent
Morgan (S) Takes on Morgan (C) / "Cabal Hits New Low"
This email this morning says it all:
"Cabal hits new low
Dumping gold while the victims of 9/11 names are being read. I'm disgusted with these low-lives"
Sure enough, The Gold Cartel struck again when most gold players had their mind on the 9/11 ceremonies. They took gold all the way down to $314.40 before the late Comex opening. Right after that opening, gold rallied a tad when JP Morgan Chase blasted gold right back down to the $314.40 area again. That is when Morgan Stanley stepped up to the plate as a big buyer.
I consider that to be significant as they were the strong-hand buyer that took gold through $315 last week. As you know from previous Midas commentaries, a hedge fund buying group is in the market to buy $2 billion worth of gold. Their first tranche was acquired below the $310 level. We also know this group took out $315 last time, so it is a pretty good bet they are trading through Morgan Stanley. That is total supposition on my part.
Yet, it all fits. Today’s strong bounce and close above $315 suggests strong hand buying going right after Chase and the cabal. This hedge fund group certainly would have wanted to defend $315, where they did their second tranche of buying, and it appears they did.
Gold must now go $320 bid and close above that level to get back on the bullish track. If it does so in the next few days, it would suggest The Gold Cartel is on its last legs. Some bullish gold points:
*In Tuesday’s Midas, I noted: "Gold has been gapping, but not running away. These gaps to the downside may need to be filled. They are close by, so the damage should not be great if gold sets back to fill them. It has risen 5 days in a row and 9 out of the last 11."
Those downside gaps have now been filled. Now, the gaps to be filled are back up on the upside.
*The gold cycle rallies after Gold Cartel bashings are coming in shorter and shorter durations of time as the months go by. What used to take many months, even a year, is now taking weeks. Will that become days?
*The Gold Cartel continues to show their weak hand by selling when few traders are around. They graduated from the Kangaroo trading hours in pre-Sydney trading to a time of great solemnity in America. Their desperation grows and shows. The sharks in the trading world have to see what Midas sees. That bodes poorly for the crooked cabal.
*Gold dropped $10 from its highs in 2 ¼ trading sessions, yet not one reason cited for its rise in the first place has changed. War tensions are still on the rise as are commodity prices. While the CRB was a tad lower, soybeans, corn and oil all rose again.
