Loading ...Gold for the Close of the 1st Quarter
London 400-Ounce Bars
Gold has been rallying not because of the dollar and the same old scenarios that the Fed will expand its balance sheet again and this will be hyperinflation. They keep saying the same thing over and over again like a broken record and hope to sell their nonsense to a fresh new crop of unsuspecting people with sophistry.
In case you have not noticed, both Europe and Russia now have shut down gold sales to individuals. This is the prelude to the elimination of paper money which has been the end-game here for the ECB which has now power remaining with interest rates at negative since 2014 with no success. The wild swings in gold are being caused by the problem that COMEX gold is based on 100-ounce bars for delivery whereas the London gold market is 400-ounce bars. The premiums spreads in the cash markets have expanded because of this difference and there is a shift where Europeans are looking at buying in the USA for fear of what is coming in Europe, which many fear will be even confiscation. Bars coming from London have to be transported in a time when transportation is a problem and then the bars must be smelted down and recast for the US market.
This is clearly a coup by the left instigated out of Europe to save the European project. The Euro cannot last if Italy pulls out. The North will not agree to consolidate the debts so we are looking at the ass-backward solution of Coronbonds which will circumvent the treaty limitations on member state debts because these will be federal with handouts to the states. The Netherlands may be the staunchest opponent for they contribute to the EU and receive nothing back by regulations.
There is a serious disruption taking place because of the machinations taking place in Europe behind the curtain. We need a closing today above 1617 to keep gold in a neutral to bullish posture. A closing below that level will warn gold is still not breaking out just yet.