By Dave Kranzler:
The Federal Reserve’s “invisible hand” in the markets is no longer “invisible.” It’s become obvious to most market participants that the Fed is working hard to keep the stock market from collapsing and the price of gold below $1300. But why?
The price of gold moved up $15 overnight from the time the Asian markets opened until the Comex gold pit opened. Shortly after the Comex paper gold market trading was underway, an avalanche of paper contracts was dumped onto the Comex – both the electronic trading system and the floor. This is what it looked like:
Gold’s path looks like Niagara Falls in the graph above shortly after the Comex opened this morning because “someone” decided to dump over 55,000 contracts onto the Comex. 55k contracts translates into 5.5 million ounce of theoretical gold.