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Gold Prices Make Biggest Weekly Gain Since 2008 as Stock Market’s Virus-Relief Rebound Fades
Friday, 3/27/2020 14:52
GOLD PRICES headed for their strongest weekly gain since late 2008 on Friday, adding more than 8.2% as the rebound in global stock markets faded dsespite governments and central banks unleashing record financial aid, stimulus and lending programs to try and offset the economic slump caused by the novel coronavirus and resulting lockdowns worldwide.
Government bond prices rose, pushing interest rates sharply lower again, while industrial commodities fell back with equities, taking crude oil back below $25 per barrel.
Having made its largest 1-day jump in Dollar terms since January 1980 on Monday, the gold price headed for a $125 weekly gain ahead of the Friday PM benchmarking in London.
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Bill,
In less than 24 hours the April futures contract went from a $31 premium to spot to a $10 discountto spot! That’s a $51 turnaround in a flash! Either the Crimex has fixed their physical short squeeze problem, or else they at least want you to THINK it is fixed. With June gold now at a huge $30 premium to April there appears to be shenanigans galore. My guess is the evil doers are banging the longs during the roll. My other guess is that with the Dow off 1,000 points (permissible volatility) it isn’t “margin call selling” as the reason for gold’s $35 decline in the April contract, but rather mandatory MOPE on a Friday when there are at least about 150 million nervous investors.
Laughable really if anybody still claims margin call selling of gold as an excuse seeing how virtually all gold sites currently show they are completely sold out of the real stuff. In fact physical gold has now ballooned to a $200 premium to the Crimex April contract based on the various gold sites still quoting. The EFP’ers must be lined up like they’re at Costco looking for toilet paper.
The continual, but still orderly liquidation of gold and silver open interest remains in effect. With yesterday’s 15,797 drop in gold OI its total OI now stands at 526,665, a whopping 269,140 contracts less than its high of 795,808 back on Jan. 14. That’s 34% of the entire OI, or 843 tons of gold, that has just went poof. Coincidentally (or not) that’s also not too far off from the EFP’s that were getting done during the same time. Gold has gained a very orderly $107 since Jan. 14, going from $1544 to $1651. The past 2 months can indeed be described as a slow-motion short covering rally. The orderly nature is highly suspicious in light of the current TEOTWAWKI environment.
Silver has also seen an orderly liquidation in its open interest. Silver OI has dropped 103,000 from its high, a 42% plunge. During that time silver LOST $3.15, going from $17.82 to $14.67. It’s apparent for whatever reason that silver has been far more easily muscled around. JPM silver hoard in action?
Another day, another 11,902 EFP’s taken at the McDonalds CME drive-up window. This has to be the easiest game in town: buy a gold contract, extort the cartel into cash settlement at a premium over in London. Attention Chicago traders who used to carry Tums in their plaid sport jacket pockets and wore platform heels: mortgage your grandmother’s house, leverage it X 20, and get in on this action!Maybe like the mob the cartel is letting longs run their cash settle racket…….. but are taking markers against all of their “customers” lol.
James Mc…
Today not withstanding….
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