June 28, 2004

It is really an outrage that only the Russians will publicly acknowledge what GATA has been pounding away at for over five years. If the mainstream gold world would acknowledge the truth and come together to expose what has happened, the price of gold would be over $500 per ounce in short order. Fat chance! These lightweights would rather go down with the ship than take on the powers rigging gold.

Can it be any more obvious that Goldman Sachs had a mandate to stop the gold price last Thursday on behalf of The Gold Cartel? Only one other time in recent years has the buying power of spec longs taken out the $6 Rule. The last time gold did so it was smashed the very next day. And now, three days later the entire gain of last Thursday has been obliterated over the past three gold trading sessions, with today’s loss alone more than negating Thursday’s advance. One of the tenets of the $6 Rule is that in the rare occasion the upper price limits of the rule are breached, the transgressors are to be immediately punished for their audacity. Mission accomplished by the bad guys, which is par for the course.

With the dollar only slightly higher, gold was taken down hard for no apparent visible reason in Europe before the Comex opening. The cabal forces made sure both $400 and the 200-day moving average were taken out early, which would inhibit new buyers from stepping up to the plate. All those who bought the breakout above both key technical points last Thursday are underwater at this point.

While all the new specs are underwater, Goldman Sachs has cleaned up and ripped you off again. This will give you some idea why their corporate trading profits are so high. All their sales between $402 and $403 are big winners. Once again they have picked the pockets of the speculators and made them look like chumps. That is not hard to do when you have the US Government backing your trades.

There are three basic reasons to continue to hammer home the details of the gold price manipulation scheme:

*This is what the gold market is all about. The rest of the gold goings-on are of a secondary nature and a lot of noise.
*This chronology will be very useful to a future Congressional investigating committee formed to get to the bottom of the gold scandal, which will only occur after the "S" hits the financial markets fan.
*There are new Café members all the time who need to get up to speed as quickly as possible on what the real deal is at the moment when it comes to gold and silver.

I yearn for the day when this MIDAS diatribe about this un-American clandestine price rigging will not be necessary. We just aren’t there yet.

The gold open interest fell 2902 contracts yesterday to 230,007. It should have dropped sharply today as The Gold Cartel buried all those who dared to get long and challenge their perceived arrogant right to keep gold subdued.

The Working Group on Financial Markets and The Gold Cartel just do not want gold above $400. This is the third time in a row they have slammed it lower from this level. In each case they wasted little time in taking it down, never allowing bullion to gain much momentum on the upside.

August gold
http://futures.tradingcharts.com/chart/GD/84

The two sizeable downside gaps were ignominiously filled in one cabal trashing.
What is good for the goose is not good for the gander. Gold went up $8 on Thursday and was sent right back down. Gold went down $8+ today. Will it go right back up $8+? Not a chance!

Silver held up fairly well considering the gold onslaught. All indications are that once this gold deluge is over regarding the Fed announcement, silver should begin to make a substantial move higher within weeks.

The silver open interest rose 857 contracts to 92,596.

Instead of contracting, the Comex silver warehouse stocks have increased a substantial 1.3 million ounces the past two days, going INTO the July delivery period. This is strictly a hunch, however, I think they are being put in there for delivery purposes because we are going to see large drawdowns as we get into the latter period of the July delivery process.

Commodity prices have been tagged lately. Another mad cow scare has affected the meat and grain markets and crude oil has come down hard from its $42+ high. The CRB lost another .35 to 267.29 and is only a couple points above its 200-day moving average. The last time it bounced off that mark was in September of 03. Crude oil continues to be drilled, falling 58 cents to $35.66 per barrel.
The dollar closed up .69 to 89.70, while the euro lost 1.03 to 120.67.

http://news.goldseek.com/LemetropoleCafe/1088605931.php