Fade the paper market manipulation as bodily gold premiums have now hit $40 in China. And there’s extra…
Bodily Gold Premiums $40 In China
September 16 (King World Information) – Fred Hickey: Right now’s gold slam (Tues. too) was all about levered merchants dumping paper derivatives (200K futures contracts offered in very transient interval immediately) as a way to break chart degree and stampede gold homeowners into promoting. PRIOR to immediately’s slam, bodily gold worth premiums in Shanghai +$40.
Managed Cash Brief Gold Is Bullish
Managed Cash (hedge funds and CFTs) already in uncommon internet brief place (COT) earlier than these two assaults. Actually even deeper immediately. Justification (akin to it’s) is “hawkish” Fed together with many who imagine Fed’s in management and can have the ability to hike aggressively with out breaking financial system.
Fed Climbing With International Financial system Teetering
Fed price hikes work with a multi-month lag, however already seeing indicators of world financial system teetering – even earlier than most of price hike impacts hit. Witness brutal FedEx warning tonight. Seeing slowdowns in Europe, Asia and now even US and enterprise deteriorated in the direction of finish of their quarter.
Fed Pivot And Gold Thrives Throughout Financial Turmoil
Gold does greatest in instances of financial turmoil (inflation, recession and so forth.) however as confirmed in my newest month’s HTS letter, gold usually is weak early within the downturns (together with shares) however then separates and turns sharply increased, probably anticipating Fed “pivots” (decrease charges and QT).
Sentiment Ripe For Main Backside
Gold sentiment (DSI) went to single digits in late 2015 & fall 2018 main bottoms (DSI 7 immediately). Managed Cash futures contracts went internet brief these 2 durations – similar immediately. Heavy Asian bodily shopping for and excessive gold premiums. Fed will fail. Not anticipating to have to attend for much longer.
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