Tuesday, October 4, 2016

Comex uses Chinese bank holiday to crush gold below $1300 and silver below $18

In recent history the West has used bank holidays, or low volume periods in Asia, to dump futures contracts worth millions and sometimes billions of ounces despite the fact that these bullion banks never provide the physical metals to support their trades.  And it is through this mechanism that the central banks often use bullion banks, and the shorting of paper contracts, to prop up the dollar when it comes under pressure.


However, it is this week in particular, from Oct, 2 - 7, that the Comex and London Gold markets can get their biggest bang for their buck in driving down gold prices thanks to little opposition from Asian buyers.

Live New York Gold Chart [Kitco Inc.]

Live 24 hours silver chart [Kitco Inc.]

With several black swans hanging over both the economy and the markets, central banks are using every measure possible to protect the dollar, especially in light of the fact that the Chinese Yuan has now become a global currency that is in direct competition with the U.S. reserve.  And unless something significant occurs between now and the end of this trading week, look for the precious metals to fall under even more extreme pressure, and be beaten down for no particular reason other than through the manipulations imposed by the bullion banks.

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