Notice gold spiked $15 on the ECB rate cut news, as you would expect gold to act upon a major easing announcement. It's standard operating procedure by the cartel to allow gold and silver to rise immediately prior to a major smackdown, with the intent of getting the speculators skewed to the long side, so the speculators will puke their positions and actually aid in the imminent smashdown as their brand new longs are almost instantly massively underwater. Pretty neat if you're the cartel, huh?
Check out Thursday's gold chart for yourself.
ECB announcement sends gold from ~ $1740 sailing through $1750 to $1758. The hugely important $1750 round number is instantly defended with false rumors and propaganda about the BIS, the fed, and the BOE dumping gold. At the time that the reports surfaced, we thought it was possible that the cartel was actually dumping paper gold to defend the $1750 area- but with Monday's quiet "retraction" of the story by MNI, it is clear that the entire operation was propaganda MOPE to defend $1750, and initiate a cascade of new longs puking their positons in a blind panic.
It seems obvious in hindsight but we didn't even think about it at the time- the BOE is dumping gold? HUH!?! You mean the gold that Gordon Brown already liquidated in "BROWN'S BOTTOM" in 2001!?!?! LOL
And now gold and silver are in perfect position (majorly smashed down) for the FOMC announcement.
That's how the game is played boyz!
*Update
And for one more example of this successful strategy, see Tuesday's spike in gold and silver just prior to waterfall smashes after the Fed's FOMC dissapointment!
