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Market Manipulations Become More Extreme, More Desperate

February 7, 2014 | Paul Craig Roberts and Dave Kranzler

Thursday, February 6, provided a clear picture of how the Fed protects its policy by manipulating the gold and stock markets. Gold started to move higher the night before as the Asian markets opened for trading. Gold rose steadily from $1254 up to a high of $1267 per ounce right after the Comex opened (8:20 a.m. NY time). The spike up at the open of the Comex reflected a rush of short-covering, and the stock market futures looked like they were about to turn negative on the day. However, starting at 8:50 a.m., here’s what happened with Comex futures and S&P 500 stock futures:

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At 8:50 a.m. NY time (the graph time-scale is Denver time), 3,225 contracts hit the Comex floor. During the course of the previous 14 hours and 50 minutes of trading, about 76,000 total April contracts had traded (Globex computer system + Comex floor), less than an average of 85 contracts per minute. The 3,225 futures contracts sold in one minute caused a $15 dollar decline in the price of gold. At the same time, the stock market futures mysteriously spiked higher:

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As you can see from the graphs, gold was forced lower while the stock market futures were forced higher. There was no apparent news or market events that would have triggered this type of reaction in either the gold or stock market. If anything, the trade deficit report, which showed a higher than expected trade deficit for December, should have been mildly bullish for gold and bearish for the stock market. Furthermore, at the same time that gold was being forced lower on the Comex, the U.S. dollar index experienced a sharp drop in price and traded below the 81 level of support. The fall in the dollar is normally bullish for gold.

Read more here:
http://www.paulcraigroberts.org/2014/02/07/market-manipulati...




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Same old, same old

Different day, same news. For example, see this old thread:

http://www.dailypaul.com/308063/precious-metal-price-manipul...

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71

DJP333's picture

I know

its getting to be old news, but when will it stop? When will the Fed and the banks no longer be able to manipulate anymore without collapsing the system again. They cannot do it forever.

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

Physical vs paper

When everyone who holds legal contract for PHYSICAL POSSESSION demands physical possession & there are no ounces left to satisfy it, this all unravels.

I've been waiting for this eagerly for last few months now & all research indicates we're getting very close to that situation. Both Harvey Organ & Andy Hoffman believe there is no way to satisfy all February open interests on COMEX, as long as EVERYBODY DEMANDED PHYSICAL DELIVERY. Based on that assumption, COMEX is already technically in default. If this doesn't happen in February, no sweat. The noose tightens just that much more. Whoever took physical possession in 2013 (at least the big movers & shakers now in China) for sure aren't letting it go any time soon. Nothing, I mean absolutely nothing physical is entering COMEX dealer vaults from outside anymore for months & months. Mathematics is favored towards justice. It's just that need to ride out next few weeks/months of uneasiness & hope demand for physical possession go viral.

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71