gold manipulation19 Oct 2021 11:10
Hi guys, I am cutting and pasting an article I read today from an analyst (non mainstream), sadly I couldn't pas:
A few months ago, Bloomberg published an article about gold price manipulation, which included some of the following choice quotes:
Chat logs introduced as evidence by prosecutors at the Chicago spoofing trial of two former precious-metals traders for Bank of America Corp.’s Merrill Lynch unit show one of them, Edward Bases, bragging about how easy it was to manipulate prices.
On Jan. 28, 2009, when Bases was working at Deutsche Bank AG, he put out bids to buy 2,740 gold futures contracts valued around $244 million over the course of four and a half minutes, according to Maria Garibotti, a vice president at Analysis Group who studied exchange and trading data for prosecutors. More than 98% were cancelled without being filled, she said.
“I f..k the mkt around a lot,” Bases said in another message.
This is called spoofing, but that’s beside the point for today.
Until these court cases, it felt as if the gold price was the only thing which bankers hadn’t been caught manipulating…
But for today, I’d like to show you how the gold traders’ favourite form of market manipulation seems to be breaking down.
First, I need to show you how it works… used to work…
Consider what occurs to the gold price very often around 1pm UK time.
On 23, 24 and 29 September, just before 1pm UK time, the gold price began a sudden and rapid selloff.
Source: Metals Daily
The same for 15, 16 and 17 September.
Source: Metals Daily
And then 7, 8 and 9 September.
Source:Metals Daily
And so on and so forth, with a similar pattern going back as far as I have been aware of gold trading.
Each morning for many years, (including during a past stint as a flying trapeze artist in Phuket), I check goldprice.org over breakfast. And I very, very often notice the distinct shape of the chart, with a plunging gold price beginning just before 9am US time.
But we haven’t got its permission to publish the chart. Still, if you’re interested in gold, I can recommend looking at the website and I’m sure that you’ll begin noticing it too…
Why 9am US time? Well, the New York COMEX opens at 8.20am…
But let’s not dig too deeply into who and where. Let’s focus on what.
The morning gold plunge is known as banging or “slamming” the open – a trading strategy used when markets are less liquid and thus more vulnerable to large price moves – when they first open.
Of course, the plunge doesn’t always happen. For example, when major economic data is being released that day, it often doesn’t occur. The data dominates the price moves that day.
It also doesn’t happen at exactly the same time each day, varying by about an hour.
And there are longer periods where it does not seem to happen at all, or dramatically less often.
But, for the past few months, I’ve been noticing it again, as I have on and off for years.
Only, lately
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