Whether the employment numbers being released on Friday were good or bad, there was no chance that gold was going to be allowed to fly on the Comex open, and it didn't. The boys smacked it, but it made a valiant attempt to rise in the face of obvious dogged opposition; probably from the usual sources. However, this is a market that clearly wants to go much higher.Gold open interest actually fell on Thursday by 1,272 contracts. The daily open interest has been all over the map this past week and a lot of the movement has been counterintuitive to the gold price action. To tell you the truth, I don't know what to make of it. The Commitment of Traders report released on Friday afternoon (cut-off was Tuesday) showed that the total net commerical short position in gold is 212,000 contracts, which is 21.2 million ounces of gold. This is the second highest net short position in gold, ever. I'm sorry, but that's not bullish. The Cartel, whether we like it or not, is still running the gold (and silver) price show. That could change of course, but as of Friday's close, that's where we sit.In my lifetime, I have never witnessed such a state of economic, financial and monetary debauchery as I see in the world today. I'm at a loss for words in not only how to describe it, but also in my ability to comprehend it all. I'm sure your feelings are similar. The situation is totally out of control and beyond fixing. Two things I do know for sure are that it's unravelling at an incredible rate and that it will all end in tears. I expect that few things, other than gold and silver, will be left standing. Let's hope that there's still enough of the world left to enjoy.
Today's commentary is from Ted Butler. It's his latest essay, entitled "Looking Back, To See Ahead," and is linked here.
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