Source: Michael J. Ballanger for The Gold Report 04/19/2017
Precious metals expert Michael Ballanger analyzes recent movements in the gold sector.
A few days ago, I postulated that despite the seasonal weakness most were anticipating in May and despite the sharp increase in Commercial shorting that was still below 2016 levels, the precious metals would buck conventional wisdom and advance further into even greater degrees of overbought status.
On Tuesday morning, after watching 22,000 contracts in June Gold completely wipe out every bid down to $1,280.60, causing a sympathetic crash in silver down to $18.06, I was not only ready to break out the infamous Louisville Slugger, but also my wonderful dog Fido went screaming out of the house in obvious expectation of the arrival of an MJB tirade and temper tantrum. Actually, Fido was well guided in assuming a Ballangerian response to the blatant intervention of the bullion banks, which was almost a “given” after the pre-Good-Friday COT report that showed the Commercials now at the highest aggregate short position in gold for 2017 and one of the highest ever in aggregate silver shorts EVER.
The Cartel cretins waited until all of the technical funds were “in” after chasing the gold “breakout” above $1,260 and a similar silver “breakout” above $18.50 until they sensed the slightest hint of weakness at which point they descended upon the Crimex trading pits like sharks in a frenzy. However, despite the pounding, gold battled back into the green and was back above $1,290, while the silver market was still reeling down 1% on the day. That was Tuesday. . .
And again today. . .
(Last two charts courtesy of Zerohedge)
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