Thus gold started Friday at around 1100 and spent the entire day climbing to par and then climbing to 1125. The cartel members were extremely nervous seeing gold's huge demand.
It was only in the last half hour that they lowered gold's value in the paper market when all the physical boys were satisfied with the metal that they had obtained.
Pay no attention to the whack of gold after 1:30 in the access market as they bankers are trading amongst themselves as everyone else had gone home.
Here are some numbers for yesterday:
The dollar fell .33 to 80.61. The euro went up .0121 to 1.3581. The pound gained .0023 to 1.5450. The yen rose .35 to 91.62.
While gold and silver are still under The Gold Cartel's gun, other commodities like crude oil (up 75 cents per barrel to $79.81) and copper (up 7 cents to $3.36 per pound) are really on the move.
The CRB gained 1.65 yo 277.80.
On the physical front, we had 5 stories to note:
1. Russia last month increased their official physical inventory of gold by 100,000 oz or 3.3 tonnes of gold.
2. The COT report released after the market closed at 4 pm showed short covering by the long speculators of some 5571 contracts in gold.
The commercials were all over the board ---they lowered their long positions (the intermediate bankers) by 9757 contracts but also the massive
bank shorts (JPMorgan and HSBC) lowered their shorts by 7400 contracts.
It was the small specs that received the paper from the bankers to th tune of 3478 contracts. Believe it or not but a rather large 5845 contracts went on the short side
from these small specs.
In silver: it seems that the silver COT was quite calm as very few longs exited and very few commercials released their short positions.
Also remember that the COT report is basis Tuesday.
3. The open interest on gold comex and silver comex basis Thursday:
The open interest climbed a huge 5000 contracts rising to 469400 from 464000. The volume on the comex gold was estimated to be 181000 contracts.
In silver, something spooked our banker friends: the OI dropped from 120600 to 119100 which is a large move down with a rather large up movement in silver.
Also mysteriously :
4. another oh-oh moment: Dennis Gartman decided to change fate: He bought a gold contract unit. However it was denominated in yen:
5. On Thursday, I reported a significant event has occurred in that we had reached record levels in gold price with respect to Euro gold. Yesterday, Euro gold climbed another 1/2 Euro.
The press over there are all over this fact. Also remember that the Europeans are the ones that are basically in the physical market. The paper gold market is over here:
However, lo and behold we have another European currency with respect to gold reaching record levels and this is Gold denominated in pounds: (from the Scarborough Bullion Desk)
Gold hit its record close of 723.00 British pounds per oz of gold:
Ok lets go to other economic stories that hit the markets:
I find this one strange: Bernanke announces a discount rate hike trying to give the impression that he is going to rein in the excess liquidity given to bankers.
Then why this?
Consumer prices rose less than expected but they always doctor the figures:
From John Willliams of shadowstats.com on the release of the consumer prices: ( he is showing a 9.8% rise)
USA mortgages showed their biggest delinquency rate yet running at at 15% delinquency over the 4th quarter:
This was certainly not welcomed news for our bankers as they are seeing their balance sheet crumble as their collateral dissipates away.
As many of you know, I like the Trimtabs data on the economy as they use tax receipts as opposed to survey to get their data on the unemployed.
Today we got a glimpse of the tax receipts so far this year. Witholding taxes are running 13.1% behind last year (year over year).
Total individual tax recepits are faring worse: down by almost 17%.: Here is the story:
We are now hearing that many cities wish to enter Chapter 9 as they cannot fund their operations: