The REASON gold failed to take out the $1220 resistance is BECAUSE the Cartel is on standby to dump gold contracts on any hint of a threat. It is funny as hell that people look at the trading and say its all normal with no hint of manipulation, just because certain resistance levels hold, or if we get a non-confirmation. DUH! The reason these technical patterns happen is because of that same Cartel that the mainstream refuses to acknowledge.
Pic, I think you are wasting your time with the tech outlook. The crooks are still in complete control of this market. I posted several months ago that the 'investigation' of silver manipulation at the Comex would fail, for the same reason. The Cartel is still a factor to deal with.
Over time, I have no doubt that the bullion demand will overcome the paper scam, and the market is under stress even as I write this. However, the counter-attack intervention is still in the playbook and therefore we are making a mistake to get too encouraged by these little rallies and whipsaws. The crooks will run the scam again, take down some weak, clueless longs, and then let gold run some more.
The real mystery in all of this is how can people deny manipulation is a factor and keep a straight face? How can so many dummies still allow themselves to get scammed so easily on the same obvious play, month after month?
And one final point: those who claim that the longs should break this scam are missing the point. Why would I want to see the end of a manipulation that allows me to accumulate cheaply? If I was making the decisions in China, sure I could overwhelm the intervention with staged buying, take down the physcial, and create a delivery failure. What then? The next year and the year after that, they would have to pay much higher prices to keep buying gold. China has a tiny fraction of the amount of gold they want to purchase, and China alone could probably buy every ounce of gold produced in the world for several years. Why would they want to expose and end a scam that allows them to buy cheaply?
We could make the same case for large institutional buyers, sovereign wealth funds, and other centrals banks too. The point is that this manipulation is going to be in effect for a while yet, and it exists because the buyers allow it. The stupid little players that fall for the same trap every month deserve to lose their money. Thus endith this rant...
cheers!
mike
